Futures Extend Losses After Private Jobs News
Stock futures extended losses Wednesday after news that private payroll gains rose less than expected and amid continuing concerns over Greece's debt crisis.
The private sector added only 38,000 jobs in May, according to a jobs report from Automatic Data Processing and Macroeconomic Advisers. That's far less than most analysts had expected.
In April, the private sector had gained 177,000 jobs, down from the 179,000 initially reported.
Another report showed the planned layoffs rose 37,135 job cuts last month, up 1.8 percent from April, and up 4.3 percent from a year ago, according to Challenger, Gray & Christmas, an outplacement firm. For the year, job cuts are 21 percent less than the same period last year.
Also in economic news, the Mortgage Bankers Association reported its index ofmortgage applications fellalmost 4 percent last week, led by refinancings, which fell 5.7 percent.
Investors will get a read on the nation's manufacturing sector when the Institute for Supply Management's Manufacturing index is released at 10 a.m. Analysts expect the index to slip below 60 as the latest regional manufacturing reports have all declined.
Auto sales will be released throughout the day, with higher prices and a shortage of fuel-efficient cars seen denting the sector's recovery.
Sealed Air gained after news the maker of Bubble Wrap will buy Diversey Holdings, a private cleaning product company, for $2.9 billion in cash and stock.
And KKR said it was selling the principal subsidiary of Hilcorp Resources for $3.5 billion to Marathon Oil .
Nokia continued to fall after at least 8 brokerages downgraded their ratingon the stock. The maker of mobile phone handset tumbled on Tuesday after cutting its sales outlook and saying it expects net sales from its products and services to be far worse than initial projections.
In the U.S. investors will look to see whether Congress and President Barack Obama reach a compromise on cutting spending and extending the debt ceiling. President Obama meets with House Republicans at 10 am at the White House.
One analyst told CNBC the huge debt will keep government intervention in markets alive.
In Europe, stockshalted their rally as a report in a German newspaper said that the International Monetary Fund will almost certainly not pay its share of the fifth tranche of aid for Greece.
On Tap This Week:
WEDNESDAY: ISM manufacturing index, construction spending, auto sales; D9: All Things Digital Conference.
THURSDAY: Chain store sales, jobless claims, factory orders, natural gas inventories, oil inventories, money supply.
FRIDAY: Non-farm payroll report, ISM non-manufacturing index; Wal-Mart shareholder meeting.
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