Wall Street Staring At Another Profit Taking Session

(RTTNews) - Trading in the U.S. index futures suggest that stocks are heading towards another session of profit taking on Wednesday. Asian stocks closed mixed, while the European markets are also trading on a lackluster note. Traders in the domestic market could focus on ADP's private payrolls report, which is seen as a precursor to the Labor Department's non-farm payrolls report, a couple of Fed speeches scheduled for the day and the results of two separate service sector surveys along with the direction of oil prices.

As of 6:15 am ET, the Dow futures are slipping 64 points, the S&P 500 futures are receding 7.90 points and the Nasdaq Composite futures are declining 14 points.

U.S. stocks retreated on Tuesday amid the weight of overbought stocks.

On the economic front, ADP is due to release its monthly private sector payrolls data for February at 8:15 am ET. Economists expect private payrolls to increase by 220,000 compared to the 213,000 job gains in January.

Charles Federal Reserve Bank President Charles Evans is scheduled to speak on the economy and the monetary policy in Lake Forest, Illinois at 9 am ET. Markit is scheduled to release the results of its service sector survey at 9:45 am ET. The service sector PMI is expected to rise to 56.8 in February from 54.2 in January. Chicago Federal Reserve is scheduled to speak on the economy and monetary policy in Lake Forest, Illinois at 9 am ET.

The Institute for Supply Management will release the results of its non- manufacturing survey at 10 am ET. The consensus estimate calls for a decline in the index to 56.5 in February from 56.7 in January. The Energy Information Administration will release its weekly petroleum status report for the week ended February 27th at 10:30 am ET.

Dallas Federal Reserve Bank President Richard Fisher is scheduled to speak on 10 years at the Federal Reserve in El Paso, Texas at 1 pm ET.

The Federal Reserve is scheduled to release the Beige Book report, which consists of anecdotal evidence of conditions in the 12 Federal Reserve districts, at 2 pm ET.

In corporate news, ABM Industries (ABM) reported better than expected first quarter earnings, while its revenues rose 5.1 percent. The company raised its full year guidance based on the retroactive reinstatement of the calendar 2014 WOTC.

Bob Evans (BOBE) reported third quarter adjusted earnings and revenues that trailed estimates and it lowered its outlook for 2015, citing weakness of its restaurant business. The company also said it has decided not to spin-off or sell BEF Foods following a strategic review.

Smith & Wesson (SWHC) reported better than expected third quarter results and guided 2015 results above consensus estimate. TiVo (TIVO) also reported better than expected fourth quarter earnings and service and technology revenues. However, the company's first quarter service and technology revenues were lackluster.

The major Asian markets closed mixed, with the Chinese, Malaysian and Taiwanese markets advanced on regional cues, while most other major markets retreated, dragged lower by the negative close on Wall Street overnight.

The Japanese market retreated amid the strength of the yen. The Nikkei 225 average ended down 111.56 points or 0.59 percent at 18,704. Meanwhile, Australia's All Ordinaries retreated closed 31.40 points or 0.53 percent lower at 5,872. Hong Kong's Hang Seng Index ended at 24,465, down 237.40 points or 0.96 percent, while China's Shanghai Composite Index added 16.48 points or 0.51 percent before closing at 3,280.

On the economic front, the Australian Bureau of Statistics reported that GDP growth for Australia quickened to 0.5 percent sequentially in the fourth quarter from 0.4 percent, although it was slower than the 0.6 percent expansion expected by economists. A report released by the Australian Industry Group showed that the service sector in Australia moved into expansion territory. The corresponding PMI rose 1.8 points to 49.9.

Markit and HSBC released the results of their service sector survey, which showed that services business activity index rose slightly to 52.0 in February from January's six- month low of 51.8. The composite index, a measure of manufacturing and service sector activity, climbed to a five-month high of 51.8 in February from 51.0 in the prior month.

European markets opened higher but gave back their gains and are currently trading mixed, as traders digest economic data from Asia and domestic private sector activity data.

In corporate news, Henkel reported a small increase in its fourth quarter adjusted operating profits and also offered cautious guidance for 2015, citing the developments in Russia. U.K.'s Legal & General reported higher operating profits for 2014. Standard Chartered reported a drop in its profit for 2014.

On the economic front, private sector activity data released by Markit showed that eurozone's private sector expanded in February. The composite output index rose to 53.3 in February from 52.6 in January, although it was lower than the flash estimate of 53.5. The service sector activity index rose to a 7-month high of 53.7, but below the flash estimate of 53.9. Meanwhile, data released by Markit and CIPS showed that the service sector in the U.K. expanded at a slower rate in February, with the service sector PMI coming in at 53.7.