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The ADP private sector employment report showed that 156,000
jobs were added in April. The number fell way below the 196,000
jobs estimated by economists that were polled by Reuters.
The report is a precursor to the more comprehensive government
nonfarm payrolls report, which is expected on Friday. A
strengthening labor market is expected to influence the U.S.
Federal Reserve's decision on future rate hikes.
The Fed, which held monetary policy steady last week, is keeping
a keen eye on data, while leaving the door open for a rate hike
in June.
World stocks added to losses after lackluster manufacturing data
from across the world triggered this week's selling spree,
notably the shrinking of Chinese factory activity for the 14th
straight month in April and British output falling to its
three-year lows.
The S&P 500 has jumped 14 percent since mid-February, helped by
recovering oil prices and an accommodative Federal Reserve.
However, the index has faltered in the past two weeks due to
lackluster earnings reports and mixed economic data.
"I think we are in a range-bound market," said Scott Brown,
chief economist at Raymond James in St. Petersburg, Florida.
"Global-growth fears are going to come back now and then
particularly when there are concerns that China is headed for a
harder-than-expected fall."
S&P 500 e-minis were down 14 points, or 0.68 percent, with
255,496 contracts traded at 8:26 a.m. ET (1226 GMT). Nasdaq 100
e-minis were down 34 points, or 0.78 percent, on volume of
32,494 contracts. Dow e-minis were down 106 points, or 0.6
percent, with 35,298 contracts changing hands.
Federal Reserve Bank of Minneapolis President Neel Kashkari is
scheduled to host a town-hall meeting in Rochester, Minnesota,
that may touch upon the monetary policy and the economic
outlook. Kashkari is a non-voting member of the Fed's
policy-setting committee this year.
Shares of Priceline fell 10.7 percent to $1210 in premarket
trading after the online travel services company's forecast fell
short of expectations.
Time Warner Inc was up 1.8 percent at $75 after the owner of CNN
and Cartoon Network reported a higher-than-expected rise in
quarterly revenue.
Zillow jumped 13.7 percent to $29.25, a day after the online
real estate listings provider raised its full-year revenue
outlook.
(Reporting by Tanya Agrawal; Editing by Anil D'Silva)
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