(MENAFN- ProactiveInvestors) U.S. stock futures held losses Wednesday morning after an ADP jobs report confirmed that the U.S. added less private sector jobs than expected in February.
Futures on the three major US markets were down about 0.2% premarket after stocks retreated on Tuesday falling from highs reached in the previous session. The S&P 500 is coming off its biggest one day drop since the end of January.
The first of two key jobs reports was released this morning with ADP saying that 212000 private sector jobs were added in February compared to expectations for 218000 and below January's revised gain of 250000. January's gain was originally reported as 213000.
The news comes ahead of the government's all-important monthly jobs report on Friday where economists expect nonfarm payrolls to have risen by 238000 down from a gain of 257000 in January.
Also on tap today the Institute for Supply Management is out with its February non-manufacturing index with consensus forecasts calling for a reading of 56.1 down slightly from January's 56.7. In the afternoon the Fed will release its Beige Book the region-by-region assessment of the U.S. economy at 2:00pm ET.
In corporate activity () fell premarket as despite posting better-than-expected fourth quarter profit sales missed targets. Same store sales also fell 10%.
American Eagle Outfitters () meanwhile surged over 10% premarket after its profit and revenue beat estimates.
() also rose after the maker of digital video recorders reported quarterly profit three cents above estimates while revenue also beat forecasts on a rise in customer subscriptions.
Smith & Wesson () jumped almost 10% after it earned an adjusted profit of 20 cents in its latest quarter nine cents above Street estimates. Revenue also topped views and the company raised its guidance for the full year on renewed demand for consumer handguns.
In other news Target () said late yesterday that it will cut several thousand jobs over the course of the next two years as part of a $2 billion restructuring plan. The retailer also said it expects digital sales to increase 40% this year and same store sales to rise between 1.5% and 2.5%.
() has rejected a request to change the way directors of its company are chosen. Activist investor Nelson Peltz's Trian Fund Management has been battling with the company for "universal proxy" which lets shareholders split votes between company-backed directors and those nominated by activists.
European markets were mixed on Wednesday with some indexes reversing earlier gains following a final estimate of a closely-watched survey of the region's services and manufacturing sectors. The composite reading of Markit's PMI came in at 53.3 in February weaker than the preliminary reading.
China's Shanghai Composite Index rose 0.5% after activity in the country's services sector grew slightly in February with HSBC's Services PMI rising to 52.0 from 51.8 in January while a sub-index showed new orders rising at their fastest pace in three months.
Crude oil futures in New York rose 51 cents to $51.05 a barrel ahead of supply data from the Energy Information Administration after API data yesterday showed supply was up less than expected for the week that ended February 27. Gold futures edged up $2 to $1206 an ounce.
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