Wall Street Nervous Ahead Of Private Payrolls Data

(RTTNews) - Early indications suggest that Wall Street stocks may open on a negative note on Wednesday following two straight sessions of gains. The earnings news flow has largely been mixed and the markets would be treated another dose of earnings flow ahead of the market open. Global cues are mixed, with the Asian markets closing mostly higher, while European stocks are showing nervousness. Crude oil prices are seeing a pullback after a 3-session rally. Against this backdrop, the markets could also focus on domestic economic data on private payrolls, the results of two separate service sector surveys and the Fed speeches scheduled for the day.

At 6:15 am ET, the Dow futures are slipping 26 points, the S&P 500 futures are moving down 5.50 points and the Nasdaq 100 futures are receding 11.50 points.

U.S. stocks advanced solidly on Tuesday, encouraged by the extended rally in crude oil prices and hopes that Greece's new government work out an amicable agreement with its international creditors.

On the economic front, ADP is set to release its non-farm payrolls report for January at 8:15 am ET. Economists expect the private sector in the U.S. to have added 220,000 jobs following the addition of 241,000 jobs in December.

Markit is scheduled to release its final service sector purchasing managers' index for January at 9:45 am ET. Economists expect the index to rise to 54.1 in January from 53.3 in December, an upward revision from the mid-month reading of 54 for January. Federal Reserve Governor Jerome Powell is scheduled to make opening remarks at the Dallas Fed conference on growth and regulatory paperwork reduction in Dallas at 10 am ET.

The Institute for Supply Management is scheduled to release its non-manufacturing index for January at 10 am ET. The consensus estimate calls for a small increase in the service sector purchasing managers' index to 56.5 from 56.2 in December. The Energy Information Administration is due to release its weekly petroleum status report for the week ended January 30th at 10:30 am ET. Cleveland Federal Reserve Bank President Loretta Mester is scheduled to speak to the Ohio Bankers League economic summit in Columbus, Ohio at 12:45 pm ET.

In corporate news, Disney (DIS) reported first quarter earnings and revenues that were ahead of estimates, helped by higher attendance at its domestic theme parks and strong merchandise sales based on its 2013 box-office hit 'Frozen.'

IAC/InterActive (IACI) reported better than expected fourth quarter results and the company said it still projects EBITDA of more than $300 million despite expecting a small drop in overall revenue.

Take-two (TWO) reported better than expected third quarter results and also raised its earnings guidance for the full year. Macy's (M) announced an agreement to buy Bluemercury for $210 million in cash. The company expects the deal to be completed by the first quarter and be accretive to its earnings in 2016. The company also raised its 2014 earnings guidance, which compares favorably to estimates.

21st Century Fox (FOXA), Allstate (ALL), CB Richard Ellis (CBG), Con-way (CNW), Digital River (DRIV), Everest Re (RE), FMC (FMC), Hanover (THG), Lincoln National (LNC), News Corp. (NWS), O'Reilly Auto (ORLY), Prudential (PRU), Under Armour (UA), and YUM Brands (YUM) are among the companies due to release their quarterly results after the close of trading.

The Asian markets closed mostly higher, encouraged by the positive close on Wall Street, the general rise in risk appetite amid the extended rally of oil prices. However, the Chinese market bucked the uptrend and declined notably in the session.

The Japanese market advanced as the safe haven yen slipped in reaction to the rise in risk appetite. The Nikkei 225 average ended up 342.89 points or 1.98 percent at 17,679. Australia's All Ordinaries closed 67.50 points or 1.19 percent higher at 5,734, marking the ninth straight session of gain. Hong Kong's Hang Seng Index ended at 24,680, up 124.09 points or 0.51 percent, while China's Shanghai Composite Index lost 30.78 points or 0.96 percent before closing at 3,174.

On the economic front, estimates released by Markit and HSBC showed that Chinese service sector growth slowed in January, with the corresponding index moving down to 51.8 in January from 53.4 in December, marking the slowest rate of expansion in 6 months.

European stocks drifted lower after a positive start amid lower oil prices and mixed corporate news flow.

In corporate news, Sky plc., which is reporting for the first time as an expanded company with pan European operations, announced a strong increase in its profit for the six months ended December 31st. Hannover Re confirmed all its business goals for 2015. Syngenta's full year profits declined despite modest sales growth.

On the economic front, shop prices in the U.K. fell 1.3 percent year-over-year in January, according to a report released by the British Retail Consortium. In December, shop prices had fallen by 1.7 percent.

Eurozone retail sales grew 0.3 percent in December from the previous month, slower than November's 0.7 percent increase, Eurostat figures showed. Nonetheless, this was the third consecutive rise in sales.

The U.K. service sector expanded more than expected in January as new business rose at a faster pace, a business survey showed. The Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index rose to 57.2 from 55.8 in December.