* ADP labor report far short of expectations
* Macy's May sales top estimates
* Futures off: Dow 48 pts, S&P 4.8 pts, Nasdaq 8.5 pts
* For up-to-the-minute market news see [STXNEWS/US]
(Adds context, updates prices)
By Chuck Mikolajczak
NEW YORK, June 1 U.S. stocks were poised for a
lower open on Wednesday as weak data on the labor market became
the latest in string of soft economic reports.
U.S. private employers added a scant 38,000 jobs in May,
far below expectations and the lowest level since September
2010, a report by a payrolls processor ADP Employer Services
showed on Wednesday. For details, see [ID:nN01229306]
The S&P has risen for four consecutive sessions, even as
data Tuesday showed a drop in business activity in the U.S.
Midwest, adding to other regional reports pointing to slower
growth in manufacturing this month amid supply chain
disruptions from the March earthquake and tsunami in Japan.
That bode poorly for Institute for Supply Management
manufacturing, which is expected to slow, and cast a cloud
ahead of a report on national employment on Friday.
The ISM monthly factory indicator, due at 10 a.m. EDT (1400
GMT), is seen easing to 57.7 from the prior month's 60.4.
Construction spending for April is expected to show a rise
of 0.3 percent after March's increase of 1.4 percent. The data
is also due at 10 a.m.
"It fits very neatly in with the puzzle we are putting
together that speaks to another soft patch and really, a
genuinely failed stimulus approach to growing the economy,"
said Peter Kenny, managing director at Knight Capital in Jersey
City, New Jersey.
"And it's not just about jobs. It's about manufacturing,
it's about real estate, it's about consumer confidence. This is
one data point in a very broad picture, and it's not
S&P 500 futures SPc1 lost 4.8 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures DJc1 lost 48
points, and Nasdaq 100 futures NDc1 fell 8.5 points.
Macy's Inc (M.N) advanced 1.2 percent to $29.23 in
premarket trade after the department store operator posted a
7.4 percent increase in May at same-store stores, beating
Yahoo Inc (YHOO.O) dipped 1.3 percent to $16.34 premarket
after two sources said it resolved a dispute with partner
Alibaba Group over the Chinese company's transfer of its prized
online payments unit to Chief Executive Jack Ma. For details,
Sprint Nextel Corp (S.N) asked U.S. regulators to block
AT&T Inc's (T.N) proposed $39 billion purchase of T-Mobile USA,
saying the deal has "no public interest benefit" and would harm
competition. Sprint lost 1.4 percent to $5.77, and AT&T edged
0.03 percent lower to $31.55 premarket. [ID:nN31154214]
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)