U.S. stock futures indicate that stocks will likely continue Tuesday's declines as investors awaited economic data on employment and the service sector, and as oil prices recovered from their overnight losses. Investors are also still concerned about the financial services sector. It will likely not affect markets much, but it is important news: Barack Obama has clinched the Democratic presidential nominee and will face Sen. John McCain.It started Tuesday, when concerns about Lehman Brothers (NYSE: LEH) as well as commodity producers mounted after Federal Reserve Chairman Ben Bernanke gave a gloomy economic outlook and signaled discomfort with the weak U.S. The Dow industrials retreated 100 points, or 0.81%, the S&P 500 lost 8 points, 0.58%, and the Nasdaq Composite fell 11 points, or 0.44%.
Several economic indicators will be reported today: Around 8:15 a.m., May ADP employment survey will be released. Then, at 8:30, revised figures on first-quarter productivity are due and are expected to be better than when reported last. At 10:00 a.m., the Institute of Supply Management will report its non-manufacturing index for May. While the index is expected to be above 50, indicating expansion, it is expected to slip yet again.
Finally, at 10:30, weekly energy inventories data is due. Oil prices fell below $124 a barrel overnight on Bernanke's comments, but recovered by morning, rising above $127 a barrel.
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