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US Market Reports

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Stocks are seeing modest weakness in early trading on Wednesday, as traders react to a disappointing report on private sector employment. Selling pressure has been relatively subdued, however, limiting the downside for the markets. The major averages are currently posting modest losses, with the tech-heavy Nasdaq well off its lows for the young session. The Dow is down 46.77 points or 0.4 percent at 12,523.02, the Nasdaq is down 2.68 points or 0.1 percent at 2,832.62 and the S&P 500 is down 4.49 points or 0.3 percent at 1,340.71. The modest weakness on Wall Street comes on the heels of the release of a report from payroll processorAutomatic Data Processing, Inc. (ADP)c showing that private sector employment increased by much less than anticipated in the month of May. ADP said private sector employment increased by 38,000 jobs in May following a downwardly revised increase of 177,000 jobs in April. Economist had expected an increase of about 170,000 jobs compared to the addition of 179,000 jobs originally reported for the previous month. The report has added to recent concerns about the strength of the labor market, with traders looking ahead to Friday's monthly employment report from the Labor Department, which includes government jobs. Banking stocks have shown a notable move to the downside on the heels of the data, dragging the KBW Bank Index down by 1.6 percent. Huntington Bancshares (HBAN), Wells Fargo (WFC), and BB&T (BBT) are turning in some of the sector's worst performances. While a majority of the other major sectors have also moved lower, most are showing only modest downward moves. Moderate weakness is visible among brokerage, wireless, and housing stocks. Meanwhile, shares of Phillips-Van Heusen (PVH) are seeing early strength after the apparel maker reported better than expected first quarter results and raised its full-year guidance. Phillips-Van Heusen is currently up by 1.3 percent. Sealed Air (SEE) is also trading higher after the packaging company agreed to acquire privately-held Diversey Holdings for about $2.9 billion in cash and stock. The transaction is expected to be accretive to earnings in the first full year following completion.

Canadian Market Reports

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TSX Looks To Open Lower Amid Weak US Jobs Data Toronto stocks are poised for a lower open Wednesday as commodities prices were leveling off from recent highs and U.S. reported disappointing private sector jobs data. That said, stock specific movements are not ruled out amid a recent batch of M&A activity and a mixed bag of corporate earnings reports. U.S. stocks futures were pointing to a lower open after the private sector employment increased by much less than anticipated in the month of May. On Tuesday, the S&P/TSX Composite Index snapped its four session winning streak to ease 26.79 points or 0.19 percent to 13,802.88. The price of crude oil moved down amid demand concerns after China said its manufacturing sector growth eased further in May, reflecting a slowdown in demand, while inflation also cooled amid the government's aggressive policy tightening. Crude for July lost $0.62 to $102.08 a barrel. The price of gold was flat as the U.S. dollar was trading mixed ahead of today's economic report from the U.S. Gold for August edged up $0.80 to $1,537.60 an ounce. In the M&A patch, Barrick Gold (ABX.TO) said it would buy 2.28 percent stake in Equinox Minerals (EQN.TO)held by Zambia Consolidated Copper Mines Investment, Zambia's state-controlled mining company. Insurance services provider Intact Financial (IFC.TO) said it would acquire the Canadian arm of Paris-basedAXA Group for C$2.6 billion in cash. In other corporate news from Bay Street, Bombardier Inc. (BBD_B.TO) reported improved first quarter net income of to $220 million or $0.12 per share, compared to $195 million or $0.11 per share a year ago. Increased deliveries in both aerospace and rail transportation divisions resulted in a 9 percent rise in total revenues. The company declared a quarterly dividend of C$0.025 per share. Media focused technology company Miranda Technologies (MT.TO) swung to profit in first quarter, reporting net income of $2.3 million or $0.11 per share, versus a loss of $1.6 million or $0.07 per share a year ago. Oil and gas firm TransAtlantic Petroleum (TNP.TO) reported a wider first quarter net loss of $22.6 million or $0.07 per share compared to a loss of $11.3 million or $0.04 per share in the year ago quarter. Oil and gas drilling services-provider Trinidad Drilling (TDG.TO) reported first quarter adjusted net earnings of C$21.8 million or C$0.18 per share, up from C$8.2 million or C$0.07 per share in the same quarter last year. Financial company HOMEQ Corp. (HEQ.TO) swung to profit in first quarter, reporting net income of C$1.5 million or C$0.10 per share, compared to a net loss of C$118,000 or C$0.01 per share in the same quarter last year. Adjusted net earnings was C$0.04 per share, down from C$0.09 per share in the prior year quarter. Book retailer Indigo Books & Music (IDG.TO) slipped into the red in fourth quarter, reporting net loss of C$11.72 million or C$0.47 per share compared to net income of C$497,000 or C$0.02 per share in the same quarter of last year. Ladies' apparel specialty chain Reitmans (Canada) Ltd (RET.TO) reported that its first-quarter net earnings decreased to C$624,000 or C$0.01 per share from C$15.77 million or C$0.23 per share last year. Food products company Sun-Rype Products (SRF.TO) reported that its first quarter net income was C$0.4 million or C$0.04 per share, up from C$0.3 million or C$0.03 per share in the first quarter of 2010. Merchandise leasing company easyhome Ltd (EH.TO) reported a marginal improvement in first quarter net income at C$2.4 million or C$0.20 per share, compared with C$2.0 million or C$0.19 per share in the prior year quarter. In economic news from south of the border, the ADP said private sector employment increased by 38,000 jobs in May following a downwardly revised increase of 177,000 jobs in April. Economist had expected an increase of about 170,000 jobs compared to the addition of 179,000 jobs originally reported for the previous month.

European Market Reports

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European Markets Modestly Lower Ahead Of U.S. Private Jobs Data The European markets are modestly lower in afternoon trading Wednesday, as unimpressive economic reports and apprehensions about the U.S. private jobs data weighed on sentiment. The Euro Stoxx 50 index of eurozone blue chippers is losing 0.20 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.19 percent. The German DAX is losing 0.19 percent and the French CAC 40 is falling 0.14 percent. The UK's FTSE 100 and Switzerland's SMI are declining 0.28 percent and 0.30 percent, respectively. Among the DAX components, BMW and Daimler are falling, while Volkswagen is marginally up. Deutsche Bank is down 0.1 percent, and Commerzbank is losing 0.2 percent. Insurer MunichRe is falling 0.4 percent. Among the gainers, diversified utility RWE is adding 0.9 percent. EON is rising 0.1 percent. HeidelbergCement is gaining 0.6 percent. Outside the main index, Lanxess is adding 1.4 percent after a report said the diversified chemicals firm is in talks to buy Belgian chemicals group Taminco NV. Tognum is marginally lower as HSBC reduced its rating on the stock to "Neutral" from "Overweight." Construction firm Hochtief is adding 0.8 percent. UBS raised its rating on the stock to "Buy" from "Neutral." In Paris, Unibail Rodamco is falling 0.8 percent. Morgan Stanley raised its price target on the stock to 158 euros from 145 euros. Builders Bouygues and Vinci are falling. Among banks, BNP Paribas and Societe Generale are losing, while Natixis and Credit Agricole are gaining. Peugeot is down 0.1 percent, while Renault is up 0.1 percent. Schneider Electric, which announced $2 billion purchase of Spain's Telvent, is marginally lower. Insurer Axa is adding 3.4 percent. The company said it expects 1.5 billion euros of cost savings by 2015 in mature markets. In London, lender Lloyds Banking Group is retreating 2.1 percent. Morgan Stanley lowered its price target on Lloyd to 53 pence from 57 pence. Barclays is losing 1.4 percent. Plumbing products maker Wolseley is down 0.3 percent. The company reported a rise in third-quarter trading profit. Hammerson is adding 1.3 percent, as the real estate investment trust reportedly received a broker upgrade. Miner Rio Tinto is adidng 1.6 percent, Anglo American is gaining 1.2 percent and BHP Biliton is advancing 1 percent. Outside the main index, Northumbrian Water Group is falling 0.6 percent. The company reported a marginal rise in full year pre-tax profit. Handset maker Nokia continued the previous session's fall and is declining 7.4 percent in Helsinki. Several analysts reduced their price targets on the stock after Nokia on Tuesday cut its second-quarter sales target for Devices & Services segment. In economic news, German manufacturing sector expanded at the slowest pace in seven months in May. InFrance also, manufacturing sector expanded at a notably slower pace in the month. In the U.K., seasonally adjusted Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index fell more than expected to 52.1 from a downwardly revised 54.4 in April. The consensus forecast called for a reading of 54.1. Meanwhile, the number of loans approved for house purchase in the U.K. dropped to 45,166 in April from 47,145 in March, below the expected level of 47,000, the Bank of England said in a report. Across Asia/Pacific, China's Shanghai Composite Index rose 0.02 percent and Japan's Nikkei 225 added 0.27 percent. Australia's All Ordinaries edged down 0.01 percent and Hong Kong's Hang Seng slipped 0.24 percent. In the U.S., futures point to a lower open on Wall Street. In the previous session, the Dow rose 1 percent, theNasdaq jumped 1.4 percent and the S&P 500 advanced 1.1 percent. In the commodity space, crude for July delivery is sliding $0.19 to $102.51 per barrel and August gold is slipping $3.9 to $1532.9 a troy ounce.

Asia Market Reports

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Indian Market Extends Recent Gains The Indian market extended its recent gains Wednesday, as lower fourth-quarter GDP growth along with today's disappointing data on manufacturing activity and core sector growth suggested monetary tightening will not happen in a hurry. Besides, indications of cooling off of commodity prices amid signs of slowing U.S. growth pointed out that inflation may peak soon giving a much-needed respite to policy makers. Business activity in India's manufacturing sector moderated to touch the lowest level in four months last month as new order inflows slowed, a survey done by HSBC Holding Plc and Markit Economics revealed. The HSBC Markit Purchasing Managers' Index, based on a survey of around 500 companies, fell to 57.5 in May, down from April's 58 points. Another report on sic core sector industries suggested that growth in output of the six core industries - crude oil, petroleum refinery products, coal, electricity, cement and finished steel - slowed down to 5.2 percent in April after expanding 7.5 percent in the year-ago period and 7.4 percent in March. The benchmark 30-share Sensex closed up 106 points or 0.57 percent at 18,609, with 22 of its components advancing. The broader Nifty index rose by 32 points or 0.57 percent to 5,592, while the BSE mid-cap and small-cap indexes closed up about 0.8 percent each. Among the prominent gainers, Reliance Communication soared nearly 5 percent after the company said it was evaluating offers from several parties for selling a controlling stake in its tower infrastructure arm, Reliance Infratel. Power producer NTPC rallied 3.4 percent, engineering & construction giant Larsen & Toubro advanced 2.3 percent and telecom giant Bharti Airtel added 2 percent. Tata Power gained 1.1 percent after it launched a Rs.1,500-crore debenture issue with a view to secure long-term funding for its projects. Maruti Suzuki rose 1.7 percent after posting a modest 1.9 percent rise in vehicle sales for May. TVS Motoradded 2.7 percent on reporting strong vehicle sales for May. TCS advanced 1.4 percent, extending gains for a fifth consecutive session. On the other hand, Tata Steel fell 1.2 percent after it completed the sale of a 51 percent stake in group firm Tata Refractories to Nippon Steel's associate Krosaki Harima Corporation. Likewise, Tata Motors shed 1.2 percent after the country's largest automaker reported a 10 percent increase in May sales. Adani Enterprises slipped 0.3 percent on a Bloomberg report that the coal importer may sell up to a 20 percent stake in Adani Mining via an IPO in London. Sintex Industries lost over 3 percent on profit taking after climbing nearly 17 percent in the past four sessions. BEML plunged 6.7 percent on posting tepid FY11 earnings. DLF eased 0.9 percent on profit taking after recent sharp gains. ACC rose 1.6 percent and Ambuja Cements rallied 3.1 percent as investors awaited monthly sales data for May.Claris Lifesciences added 2.5 percent after it received in-principle approval from the European Union for its anesthetic product, 'Propofol.' Godrej Consumer Products edged up 0.6 percent after the FMCG major agreed to buy a 51 percent stake inDarling Group Holdings, a pan-African hair care company. Aviation stocks such as Kingfisher and Spicejet rose about a percent each after state-run oil firms cut jet fuel prices for the second fortnight in a row. JSW Energy rose 2.7 percent after the utility scrapped its plan to acquire CIC Energy Corp due to continuing problems faced by the Canadian coal miner on its mining lease in Botswana. SKS Microfinance jumped 3.4 percent after the micro finance lender said it would charge a one percent processing fee on all micro loans. On the global front, the other Asian markets swung between gains and losses before closing on a mixed note Wednesday, as increasing political tension in Japan and signs of faltering global growth prompted investors to lock in some profits. Regional economic data showing contraction in Australia's manufacturing sector and China's PMI readings that were slightly below economists' forecasts added to a growing pile of evidence that the global economic recovery is losing momentum. European stocks were mixed in early trading and the U.S. index futures pointed to a lower open on Wall Street Wednesday, as investors braced for key U.S. economic indicators, including the ISM manufacturing data due later in the day and employment figures for May to be released Friday for further clues on the strength of the world's largest economy. The euro eased from a fresh 4-week high against the U.S. dollar and crude futures fell on weak manufacturing PMI reports from the major European economies.

Forex Top Story

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Dollar Steady Ahead Of ADP Jobs Report The dollar was stable Wednesday morning after suffering notable losses earlier in the week. Traders eyed a fresh batch of economic data in the wake troubling figures that have raised concerns about the sluggish recovery. Housing remains a serious drag on the economy, and the spillover effects of Japan's earthquake and soaring energy prices have caused manufacturing to tail off. High prices at the pump have also caused consumers to tighten their purse strings, leaving the economy in the doldrums following a lackluster first quarter. Reports suggesting that the International Monetary Fund is all but certain to withhold aid for Greece have allowed the dollar to find its footing against the euro. The buck was holding near $1.44, having touched a 4-week low of $1.4446 overnight. After a strong start to the month of May, the dollar has edged back toward a recent 17-month low of $1.4939. Eurozone manufacturing growth fell sharply to a seven-month low in May, survey data from Markit Economics showed Wednesday. The final Markit Purchasing Managers' Index dropped to 54.6 in May from 58 in April and stayed below the flash estimate of 54.8. The latest decline was the biggest since November 2008. The dollar was steady near Y81.25 versus the yen, with the pair stuck in a stubborn trading range. Early gains saw the dollar firm to $1.64 versus the sterling, compared to a 4-week low of $1.6546. U.K. mortgage approvals fell more than expected to a four-month low in April, data from the Bank of England showed Wednesday. At 8:15 am ET, the ADP private sector employment report, which is often seen as a precursor to the Department of Labor's non-farm payroll report, is due. Economists expect the private sector to have added 170,000 jobs in May following the 179,000 jobs added in the previous month. The Institute for Supply Management is set to release the results of its national manufacturing survey at 10 am ET. Economists expect a reading of 57.5 for May, a decline from 60.4 in April. Also due around the same time is the Commerce Department's construction spending report. The consensus estimate calls for a 0.1 percent increase for April, a marked slowdown from the 1.4 percent increase in the previous month.