Futures Remain Lower After Fed Disappoints
U.S. stock index futures were lower Wednesday despite a better-than-expected ADP jobs report, as investors remained disappointed after the Fed suggested further monetary stimulus was unlikely.
On the economic front, private employers added 209,000 jobs in March, according to the ADP National Employment Report. Economists had expected a gain of 200,000.
The ADP report is seen as a precursor to the government’s monthly employment report, which is due out this Friday.
Non-farm payrolls are expected to show a gain of above 200,000 in March, the fourth-straight month the economy has added more than 200,000 jobs, after an increase of 227,000 in the previous month.
At 10 a.m. the Institute for Supply Management will release its March non-manufacturing index, which tracks the service sector economy. Economists polled by Briefing.com predict the index fell last month to 56.7, down from 57.3 in February.
Weekly mortgage applications rebounded last week, reversing seven straight weeks of declines, thanks to an increase in purchase demand as interest rates slipped, according to the Mortgage Bankers Association.
In Europe, the ECB kept interest rates at a record low of 1 percent. In addition, ECB President Mario Draghi said in a news conference that inflation is likely to stay above the 2 percent target for the year, but said talk of an exit was premature.
GE slipped after Moody's downgraded the ratings of both the conglomerate and its finance unit, GE Capital by a notch, citing risks in the funding model. GE is the minority shareholder of NBCUniversal.
SanDisk tumbled after the chipmaker warned that revenue and margins were being hurt due to weak demand from mobile phone manufacturers and a glut in supply.
Among earnings, Monsanto gained after the agribusiness company reported better-than-expected earnings, adding that improving sales would boost its full-year outlook.
Bed Bath & Beyond is slated to post earnings after-the-bell tonight.
—Follow JeeYeon Park on Twitter: @JeeYeonParkCNBC—
Coming Up This Week:
WEDNESDAY: ISM non-mfg index, oil inventories, Fed's Williams speaks, JPMorgan's annual letter to shareholders released; Earnings from Bed Bath & Beyond
THURSDAY: Jobless claims, Fed's Bullard speaks, chain-store sales, Yahoo board members' 1st day; Earnings from CarMax
FRIDAY: Good Friday—markets closed/banks open, non-farm payrolls, consumer credit
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