The major U.S. index futures are pointing to a negative opening on Wednesday, with the muted sentiment reflecting caution despite the release of the results of a private non-farm payroll survey showing the smallest contraction in jobs in about 2 years. Some earnings, including those from Pfizer (PFE), were disappointing. Reflecting the negative sentiment, commodity prices are also moving to the downside ahead of the release of the weekly oil inventory report. The results of the services survey of the Institute for Supply Management's services survey to be released shortly after the markets may also give cues for today's trading direction.
After showing some nervousness in early trading on Tuesday, the major U.S. averages advanced following the release of an upbeat housing report, rising steadily throughout the session to close significantly higher. The major averages ended higher for the second straight session, helped by a rally in commodity, housing and biotechnology stocks.
The Dow Industrials ended 111.32 points or 1.09% higher at 10,297 and the S&P 500 Index advanced 14.14 points or 1.30% to 1,103, while the Nasdaq Composite Index gained 18.86 points or 0.87% to close at 2,190.
Twenty-eight of the thirty Dow components closed the session higher, with General Electric (GE), Merck (MRK), Home Depot (HD), Alcoa (AA), JP Morgan Chase, American Express (AXP) and Pfizer (PFE) advancing strongly.
Among the sector indexes, the NYSE Arca Airline Index rallied 3.18% and the NYSE Arca Biotechnology Index rose 2.63%. The Philadelphia Housing Sector Index jumped 5.06%. In the technology space, the NYSE Arca Disk Drive Index moved up 1.97% compared to a 3.51% surge by the NYSE Arca Computer Hardware Index.
On the economic front, the National Association of Realtors reported that its pending home sales index rose 1% month-over-month in December following a 16.4% plunge in November. The indexes for the Northeast, Midwest and the South rose, but the index for the West declined.
Auto sales by the U.S. automakers rose from a year-ago in December, apparently benefiting from the recall by Toyota (TM), whose sales fell 16%. General rose 23% on a selling day adjusted basis and Ford's (F) sales were up 35%.
Commodity, Currency Markets
Crude oil futures are moving down $0.23 to $77 a barrel after advancing $2.80 to $77.23 a barrel on Tuesday. Gold futures, which gained $13 to $1,118 an ounce in the previous session, are currently trading down $5 to $1,113 an ounce.
On the currency front, the U.S. dollar is trading at 90.81 yen compared to the 90.38 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is currently valued at $1.3966.
Asia
The major Asian markets rose across the board on Wednesday, encouraged by the positive lead from Wall Street. The Indian, Chinese and Hong Kong markets rose over 2% each, while the Singaporean, South Korean and Taiwanese markets all advanced over 1%.
Japan's Nikkei 225 average showed volatility throughout the session, although the index largely confined itself to positive territory. The index closed up 33.24 points or 0.32% at 10,404.
Auto stocks ended mostly higher, with the exception of Toyota Motor, while financial stocks also movedmostly higher. Pharma stocks also rallied strongly. On the other hand, some technology, real estate and resource stocks came under selling pressure.
Australia's All Ordinaries opened higher and hovered in positive territory throughout the session. The index closed up 44.40 points or 0.96% at 4,673. Most sectors, barring defensive healthcare, telecommunication and utility stocks, advanced. Meanwhile, the four major banks also declined.
Europe
The major European markets are currently moving to the downside after showing some volatility early in the session. The French CAC 40 Index is rising 0.03%, while the German DAX Index and the U.K.'s FTSE 100 Index are moving down 0.23% and 0.14%.
On the economic front, Eurostat reported that the euro area's retail sales remained unchanged in December compared to the previous month. In November, retail sales fell by 0.5%. Economists had estimated a 0.4% increase for the latest month.
Among the services PMIs released from Europe, the euro zone services purchasing managers' index fell 0.5 points to 53.7 in January. Meanwhile, Germany's services purchasing managers' index edged down 0.5 points to 52.2 in January. The level of new work placed at German service providers was largely unchanged in January. Some firms blamed difficulties in stimulating client demand for the subdued growth in new work.
The CIPS/Markit purchasing managers' index reflecting activity in the U.K. services sector declined to 54.5 in January from 56.8 in December. Economists had estimated a more modest decline to 56.5.
At the same time, the Nationwide Building Society announced that its consumer confidence index rose to 73 in January from an upwardly revised score of 70 in December, beating economists' expectations for the index to stand at 70. However, consumers became more cautious about spending money during January, with the spending index plunging 12 points to 96. The percent of people who felt it was a good time to make a major purchase dropped to 32% in January from 35% in the prior month.
U.S. Economic Reports
The ADP National Employment report released earlier in the day showed that the non-farm private sector lost 22,000 jobs in January. Economists had a loss of 30,000 jobs for the month. The previous two months' employment numbers were revised up to a show a decline of 61,000 jobs compared to the 84,000 job losses estimated earlier.
Employment in the service providing sector increased by 38,000, while the goods producing sector lost 60,000 jobs. The manufacturing sector lost 25,000 jobs, with the job losses in the sector dropping to the lowest since January 2008.
The ISM is scheduled to release the results of its non-manufacturing survey at 10 AM. The non-manufacturing index is likely to show a reading of 51 for January.
In December, non-manufacturing activity expanded, although at a slightly slower than expected rate. The non-manufacturing index rose 1.4 points to 50.1 in November, while economists had expected an improvement to 50.5. The business activity index climbed 4 points to 53.7, but the new orders index declined 3 points to 58.7 and the order backlogs index eased 0.5 points to 48. Although the employment index rose 2.4 points, it remained below the '50' cut off mark at 44.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended January 29th at 10:30 AM ET.
Crude oil stockpiles fell by 3.9 million barrels to 326.7 million barrels in the week ended January 22nd. Despite the decline, crude oil inventories remained above the upper limit of the average range.
Distillate fuel inventories rose by 0.4 million barrels, remaining above the upper boundary of the average range. Gasoline stockpiles also rose, advancing by 2 million barrels, and remained above the upper limit of the average range. Refinery capacity utilization averaged 79.5% over the four-weeks ended January 22nd compared to 80% in the previous week.
Federal Reserve Governor Kevin Warsh is scheduled to speak to the New York Association for Business Economics on regulatory reform at 1 PM ET.
Earnings
Black & Decker (BDK) reported that its fourth quarter adjusted net earnings rose to $1.24 compared to 96 cents per share last year. Sales fell 6% year-over-year to $1.3 billion. Analysts estimated earnings of 77 cents per share on revenues of $1.20 billion.
International Rectifier (IRF) reported a fourth quarter loss of 24 cents per share compared to a loss of $4.25 per share last year. Earnings from continuing operations and before special items in the year-ago period were 21 cents per share. Net sales fell to $5.98 billion from the year-ago's sales of $6.55 billion.
Pfizer (PFE) said its fourth quarter reported revenues rose 34% to $16.54 billion. The company's adjusted earnings fell to 49 cents per share 65 cents per share last year. The consensus estimates called for earnings of 50 cents per share on revenues of $15.88 billion. For 2010, the company expects revenues of $67 billion to $69 billion and adjusted earnings of $2.10-$2.20 per share. Analysts estimate earnings of $2.27 per share on revenues of $67.47 billion.
Time Warner's (TWX) fourth quarter revenues rose 2% to $7.3 billion, ahead of the $6.81 billion. The company reported adjusted earnings of 55 cents per share compared to 19 cents per share in the year-ago period. The company raised its regular dividend by 13.3% to $0.2125 per share. The company expects 2010 full year growth in adjusted income per share from continuing operations to be in the mid-teens.
Western Union (WU) said its fourth quarter revenues rose 2% to $1.3 billion. The company reported earnings of 32 cents per share compared to adjusted earnings of 37 cents per share last year. Analysts estimated earnings of 32 cents per share on revenues of $1.31 billion. For 2010, the company expects GAAP revenues to range from down 1% to up 2% and GAAP earnings of $1.29-$1.34 per share. The consensus estimates call for earnings of $1.40 per share on revenues of $5.38 billion, up 4%.
Stocks in Focus
MetLife (MET) could be in focus after it reported fourth quarter earnings of 96 per share compared to 17 cents per share last year. The company's premiums and other revenues climbed 14% to $9.3 billion. Analysts estimated earnings of 99 cents per share on revenues of $12.79 billion.
Meanwhile peer ACE (ACE) reported net income, excluding investment gains and losses, reported earnings of $2.01 per share compared to $1.80 per share in the year-ago period. The consensus estimates called for earnings of $1.93 per share.
Unum Group's (UNM) net income, excluding investment gains and losses, were 66 cents per share compared to 63 cents per share last year. Total revenues fell to $2.50 billion from the year-ago's $2.32 billion last year. The consensus estimates called for earnings of 66 cents per share on revenues of $2.57 billion.
NTELOS Holdings (NTLS) is likely to gain ground after Standard & Poor's said the company would replace Chattem (CHTT) in the S&P SmallCap 600 Index. Chattem is to be acquired by Sanofi-Aventis (SNY) in a deal expected to be completed soon.
PNC Financial (PNC) may also see buying interest after it said it has reached an agreement with its banking regulators and the U.S. Treasury to allow it to repay $7.6 billion in TARP funding it received. The company also said it plans to offer $3 billion of its common stock and also announced its intention to offer senior notes to provide additional liquidity.
News Corp. (NWS) reported second quarter revenues rose 10% to $8.7 billion. The company's adjusted earnings rose to 25 cents per share from 15 cents per share last year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.