Under Pressure on Mixed Economic Signals

The bulls are finding some difficulty maintaining the momentum from the past two sessions of solid gains, as traders are taking the opportunity to book some profits, offsetting a smaller-than-expected drop in private sector payrolls. A smaller-than expected improvement in the ISM Non-Manufacturing Index is also dampening sentiment even as the index depicted expansionary conditions in the service sector. A profit miss and disappointing guidance from Dow member Pfizer is adding to some apprehension on the Street, along with an unexpected drop in January same-store sales from Walgreen Co. Other earnings reports are evoking a mixed response toward the media sector as shares of Time Warner and Comcast are both under pressure despite topping expectations, while News Corp is solidly higher after it topped earnings expectations and boosted its dividend. Treasuries remain lower following the economic reports, and after a jump in mortgage applications. Overseas, Asian markets rallied following the lead from the US' two-day advance, while shares in Europe have given up early gains and are lower.

Rally Stalls Despite Smaller-Than-Expected Private Payrolls' Fall

After posting two-straight sessions solidly higher, the equity markets are under some pressure in early action, even as the ADP Employment Change Report showed a smaller-than-expected drop in private sector payrolls. Traders may be booking some profits from the recent rally, treading cautiously ahead of Friday's labor report. Meanwhile, a profit miss by Dow member Pfizer may be adding to the early apprehension on Wall Street. Treasuries are lower, extending losses following the employment data, ahead of a key report on service sector activity, and following a jump in mortgage applications. In other equity news, Comcast and Time Warner both topped the Street's profit projections. Overseas, Asian markets rallied following the lead from the US' two-day advance, while shares in Europe are mostly higher, but have pared early gains.