Wall Street posted gains in March, with the S&P 500 Index rising more than 8%. Today, stocks appear set to open lower, pressured by concerns the government will force General Motors and Chrysler into bankruptcy, and faced with a slew of economic reports.
The ADP Employment Change report estimated 742,000 private sector jobs were lost in March, which was worse than the consensus estimate of -663,000 and the downwardly revised February reading of 706,000 (from -697,000). The ADP employment change provides a clear reminder that the labor market downturn is expansive and will likely lower expectations even further for Friday's nonfarm payrolls report from the Department of Labor, which is currently expected to show a decline of 658,000 positions.
At 10 a.m. ET, investors will have three reports to digest. The ISM index of manufacturing activity for March is expected to rise to 36 from 35.8, according to a Briefing.com consensus, still indicating a recessionary atmosphere. Also due are pending home sales for February, expected to be unchanged from the prior month, and construction spending for February, expected to drop 1.9% after a 3.3% decline in January. Later in the day, key reports on auto and truck sales for March are due from the major companies.
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