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U.S. Stock-Index Futures Decline After ADP Report on Payrolls

Feb. 5 (Bloomberg) -- U.S. stock-index futures fell, amid concern the market will continue to be volatile despite yesterday’s rebound for the Standard & Poor’s 500 Index, as a private report showed companies added fewer jobs than forecast .

Las Vegas Sands Corp. declined 4.6 percent after a report showed Macau casino revenue growth slowed to 7 percent last month from a year earlier. Time Warner Inc. was unchanged after posting quarterly profit that beat analyst estimates and announcing a $5 billion stock buyback program and higher dividends. Myriad Genetics Inc. rallied 14 percent after boosting its 2014 profit forecast.

Futures on the S&P 500 expiring in March retreated 0.5 percent to 1,735.40 at 8:20 a.m. in New York. Dow Jones Industrial Average contracts lost 39 points, or 0.3 percent, to 15,299.

“January was a bad month for financial markets and the whole year may be bumpy as the market digests several themes, including Federal Reserve tapering and emerging-market weakness,” Andreas Lipkow, a senior market strategist at Kliegel & Hafner AG in Berlin, said in a telephone interview. “At the same time, we should see some stabilization in the U.S. employment reports and that could send the market into positive territory.”

The S&P 500 fell 3.6 percent in January, its first monthly decline since August as the Federal Reserve pared stimulus and emerging-market currencies slumped amid signs China’s economy is slowing. The equities benchmark added 0.8 percent yesterday, rebounding from its biggest slide since June, as companies from Yum! Brands Inc. to Michael Kors Holdings Ltd. reported profit that exceeded projections.

Companies in the U.S. boosted payrolls by 175,000 in January, figures from the ADP Research Institute in Roseland, New Jersey, showed today. The median projection of 40 economists surveyed by Bloomberg called for an advance of 185,000.

The private report precedes the Labor Department’s payrolls data on Feb. 7. The number of people hired in January rose to 184,000 from 74,000 in December, according to the median estimate of economists surveyed by Bloomberg.

The service industry probably grew at a faster pace last month, after expanding in December at the slowest rate since July 2012, a report at 10 a.m. New York time may show. The Institute for Supply Management’s non-manufacturing index rose to 53.7 in January from 53 in December, economists surveyed by Bloomberg forecast.

The S&P 500 has fallen 5 percent this year, and lost as much as 5.8 percent since reaching a record 1,848.38 on Jan. 15, the first decline of more than 5 percent since June 2013. Should it follow the pattern from the 18 times that’s happened since 2009, the S&P 500 would fall to about 1,697 in the next week, then rebound to a new high by mid-April, according to data compiled by Bloomberg and Bespoke Investment Group.

The market may “unravel quickly” if the major indexes trade lower this week, Tom DeMark, the chief executive officer of DeMark Analytics LLC, said today in an interview on CNBC. If stocks fall today and open lower and trade lower tomorrow, he said, stocks are likely to continue falling regardless of Friday’s jobs data.

Some 26 companies on the S&P 500 report quarterly results today. Profit for the benchmark’s stocks probably increased by 8.3 percent in the fourth quarter of 2013 and revenue by 2.5 percent, analysts’ estimates compiled by Bloomberg show.

Las Vegas Sands declined 4.6 percent to $71.60. Gambling revenue in Macau, where the casino operator generated more than half its revenue in 2012, rose 7 percent in January from a year earlier to 28.7 billion patacas ($3.6 billion), according to a report from the city’s Gaming Inspection and Coordination Bureau. That’s the slowest growth since October 2012.

Cognizant Technology Solutions Corp. fell 3.5 percent to $93.65. The provider of outsourcing services forecast adjusted earnings of at least $5.02 a share for 2014, compared with analyst estimates for $5.08. Cognizant reported fourth-quarter adjusted EPS of $1.15, in line with analysts’ estimates.

Time Warner was unchanged at $62.40. The media company that owns HBO and the Warner Bros. film studio said fourth-quarter earnings excluding some items advanced 1 percent to $1.17 a share in the period. Analysts predicted $1.15 on average, according to data compiled by Bloomberg.

Myriad Genetics surged 14 percent to $31.32 in pre-market New York trading. The breast-cancer test provider forecast earnings in 2014 will be $2.09 to $2.12 a share. The Salt Lake City, Utah-based company in November predicted profit would be no more than $1.97 a share.

3M Co. rose 1.3 percent to $128.40. The manufacturer of products ranging from electronics to dental braces authorized a $12 billion stock buyback.

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