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Stocks Headed Higher As Wall Street Takes ADP's Preview Of Jobs Report In Stride
By: Midnight Trader   Wednesday, July 01, 2009 9:00 AM

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U.S. stock futures maintain pre-market gains in the wake of an ADP report showing private companies shed 473,000 jobs in June. The government's monthly employment report is due out Thursday morning, a day early since markets are closed for the 4th of July holiday on Friday. Stocks have been tipping higher throughout the morning after closing the books on a strong Q2. The DJIA ended the second quarter with an 11% rise. The S&P 500 was up 15% and the Nasdaq climbed 20% in the three-month period.

One of many economic reports due out today, ADP said companies in the U.S. private sector shed 473,000 jobs in June. The decline in employment was close to the consensus forecast of Wall Street economists of a decline of 498,000.

Economists expect the Labor Department to report that companies shed 325,000 in June and an increase in the unemployment rate to 9.6%, according to MarketWatch.

A closely followed U.S. measure of factory activity, the Institute of Supply Management's June manufacturing gauge is due for release at 10 a.m. ET today. Also on tap: pending home sales, construction spending, car sales and weekly energy inventories.

As for individual share movers, Force Protection (FRPT) is down a hefty 32% and Navistar (NAV) is off about 7%. The declines follow late reports Tuesday night that Oshkosh Corp. (OSK) was awarded a $1.1 bln contract to build armored vehicles for the U.S. military. FRPT and NAV were vying for the deal. Oshkosh is up 29% in late pre-bell action.

Deal news impacted the broader market.

Borland (BORL) shares are higher in premarket trade after Micro Focus sweetened its cash offer to $1.50 per share from $1.15 per share, topping a proposal made by an unnamed bidder last week. That deal would value BORL at $113 million.

Last week, BORL said in a filing that the strategic buyer had increased its offer proposal to $1.25 in cash. The company said it had opened its books to the unnamed party for due diligence.

Elsewhere, CardioNet (BEAT) is an active decliner after revising its full year 2009 revenue guidance to a range of $156 to $160 mln, below the analyst mean of $172 mln on Thomson Reuters. Adjusted EPS is seen in the range of $0.30 to $0.35 per share, vs. Street estimates of $0.66 per share.

Myriad Genetics (MYGN) continues its sharp evening slide seen after a revenue warning.

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