Futures Predict Lower Start

Following strength over the past two days, premarket futures are pointing to a lower start. The monthly ADP employment data suggest Friday's jobs report will show larger than expected rise in nonfarm payrolls but the market's primary focus will be on the EIA Petroleum Status Report which will be released at 10:30AM. Overall, the the newswires are relatively quiet.

Turning toward stocks, news from Yahoo (YHOO), Novell (NOVL), and Merck (MRK) is in the spotlight. Premarket gainers are VSNT, DOCC, GOAM, OPTM, HTI, VIFL, PLAB, NTLI, EMRG, LVLT, RBAK, IDEV, MEDI, TATTF, DIVX, ICO, CROX, and AEOS. Premarket losers are NOVL, IDCC, MCDTA, PNRA, WIND, ANAD, ERIC, SHPGY, ORCL, BIDU, and GIGM.

The market is looking a bit tired and toppy and with today's uninspiring headlines we could very well see some defensive profit-taking and further sector rotations ahead of Friday's jobs data. The bulls have managed quite a recovery following the Monday after Thanksgiving so they have little to prove that they remain in control. Have a wonderful Wednesday.