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U.S. stock futures fell after Tuesday's big rebound, with volatile markets awaiting more developments with a $700 billion financial-rescue package that is stalled in Congress.
At last, lending has begun to flow again, or at least to drip: The cost of borrowing overnight U.S. dollar funds between banks tumbled Wednesday, but remained stubbornly above official interest rates.
The Automatic Data Processing jobs report showed a decline of 8,000 in the private sector in September, less than the 55,000 pegged by a survey of economists. Some pundits warn, however, that the ADP report hasn't lined up with the monthly jobs reports from the Labor Department recently. That report is due Friday.
S&P 500 futures recently dropped 8.8 points to 1150.2, Nasdaq 100 futures declined 16 points to 1585 and Dow industrial futures fell 57 points to 10804. The Nikkei 225 rose 1% in Tokyo, and the FTSE 100 was recently up 1.7% in London.
"Support now is in the area of the climactic intraday lows" from Monday, said Phil Roth, chief technical market analyst at Miller/Tabak. That would be around 1100 on the S&P 500 and around 10370 on the Dow.
U.S. stocks surged Tuesday - recovering more than half of Monday's losses - on hopes some form of the rescue bill will be passed in Congress after an initial defeat in the House of Representatives. The Senate is scheduled to vote Wednesday on its version, with one of the tweaks expected to be a boost in the federal deposit-insurance limit to $250,000 from $100,000.
Auto makers are due to report monthly auto sales for September. Ahead of those numbers, Daimler AG (DAI) Wednesday denied speculation of a profit warning.
Oil futures, a gauge of global economic activity that have fallen sharply during the crisis in banking worldwide, fell $1.32 a barrel to $99.32.
Stocks set to be active Wednesday include:
-Top directors and officials from Farmer Mac (AGM), the government-chartered organization that funds agricultural loans in the U.S., met late Tuesday in Washington to discuss ways to stabilize the company. Farmer Mac faces heavy losses due to its holdings of tens of millions of dollars worth of investments that have rapidly lost value. Shares fell 6% in late trading.
-Force Protection Inc. (FRPT) rose 12% after hours as it filed and amended reports from 2007 and 2008. For the second quarter, the maker of armored land vehicles said per-share earnings rose to 12 cents from 1 cent as sales more than doubled.
-BHP Billiton Ltd. (BHP) has cleared another hurdle in its drive to win regulatory approval for its $119 billion takeover bid for rival Rio Tinto Ltd. (RTP), with the Australian Competition and Consumer Commission Wednesday saying it won't oppose the deal on competition grounds. Rio Tinto rose 4.4% premarket and BHP was flat at $51.99 after being up earlier in the session.
-Rob Curran, Dow Jones Newswires; 201-938-5176; robert.curran@dowjones.com
(Steve Goldstein and Keith Jenkins contributed to this report)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=cN9izTttzEYnp%2BVDiKDWSA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
10-01-08 0852ET
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