Wednesday, June 1, 2011

U.S. stock futures lower after dismal ADP data; Dow sheds 0.4%


Forex Pros ? U.S. stock futures pointed to a lower open on Wednesday, as weaker-than-expected employment data added to concerns over the pace of the U.S. economic recovery, while shares in Nokia plunged to a 13-year low ahead of the open. <br /><br />Dow Jones Industrial Average futures indicated a decline of 0.4%, the S&amp;P 500 futures shed 0.45%, while Nasdaq 100 futures pointed to a drop of 0.55%.&nbsp;&nbsp;&nbsp;&nbsp; <br /><br />Stock index futures added to losses after data showed that U.S. non-farm private employment rose significantly less-than-expected in May, increasing by 38K. Analysts had expected an increase of 179K.<br /><br />Meanwhile, Nokia saw shares plunge 9.8% in pre-market trade after it warned on Tuesday that second quarter revenue could fall short of previous estimates, due to declining prices and sales volumes. <br /><br />The warning prompted Goldman Sachs to downgrade the company to &lsquo;neutral&rsquo; from &lsquo;buy&rsquo;, as it increases the downside risks for the mobile phone giant.&nbsp;&nbsp; <br /><br />Shares in Jos. A. Bank Clothiers tumbled 10% after it said first quarter revenue totaled USD193.3 million, falling short expectations for revenue of USD194.8 million.<br /><br />On the upside, IT-service provider Telvent saw shares soar 14.9% after it agreed to be acquired by France&rsquo;s Schneider Electric for nearly USD2 billion.&nbsp; <br /><br />Clothing retailer Phillips-Van Heusen saw shares climb 2% after it swung to a first quarter profit of USD57.7 million, compared to a loss of USD27.6 million a year earlier. The company raised its full-year earnings forecast, topping market estimates.<br /><br />Lions Gate Entertainment saw shares add 0.9% after the film producer swung to a fiscal fourth quarter profit, as results were boosted by international growth and customers ordering its television and movie titles through on-demand cable services.<br /><br />Meanwhile, shares in search engine giant Yahoo could be active after a media report said that the company had reached an agreement with partner Alibaba Group to resolve the ownership of the Chinese company&rsquo;s online payments unit, Alipay.&nbsp;&nbsp;&nbsp; <br /><br />Other stocks in focus included mobile phone carriers Sprint Nextel and AT&amp;T. On Tuesday, Sprint asked U.S. regulators to block AT&amp;T&rsquo;s proposed takeover of T-Mobile USA, saying the deal has "no public interest benefit" and would harm competition.<br /><br />Across the Atlantic, European stock markets were broadly lower as uncertainty over Greek sovereign debt weighed on market sentiment. The EURO STOXX 50 slumped 0.3%, France&rsquo;s CAC 40 dipped 0.15%, Germany's DAX declined 0.2%, while Britain's FTSE 100 fell 0.18%.&nbsp;&nbsp;&nbsp; <br /><br />During the Asian trading session, Japan&rsquo;s Nikkei 225 Index eased up 0.27%, as gains were capped by concerns over domestic political turmoil. Hong Kong&rsquo;s Hang Seng Index shed 0.24% after a report showed that China&rsquo;s purchasing managers index declined to a 10-month low in April. <br /><br />Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.<br /><br />


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