FKLI Related News (Thurs, Apr 4)

NEW YORK (Reuters) - Stocks fell on Wednesday, with the S&P 500 index posting its biggest daily decline in more than a month, after a weaker-than-expected survey of private employers raised concerns about the strength of the economy. News the Pentagon was sending a missile defense system to Guam in the coming weeks and remarks by Defense Secretary Chuck Hagel that North Korea posed a "real and clear" danger added to investor caution.

The ADP National Employment report on private-sector jobs showed less-than-expected hiring in March, which was a worrying sign for investors before the Labor Department's March non-farm payrolls report on Friday. Wednesday's market decline came a day after the benchmark S&P 500 and the Dow finished at record highs. Energy and financial sectors led the day's fall on the S&P 500, with the S&P 500 financial index (.SPSY) down 1.7 percent. Defense company shares gained despite the broader move lower. Shares of Northrop Grumman (NOC.N) were up 1.1 percent at $70.18, while shares of General Dynamics (GD.N) were up 2.1 percent at $68.39.

The Dow Jones industrial average (.DJI) was down 111.66 points, or 0.76 percent, at 14,550.35. The Standard & Poor's 500 Index (.SPX) fell 16.56 points, or 1.05 percent, at 1,553.69, its biggest daily percentage decline since February 25. The Nasdaq Composite Index (.IXIC) was down 36.26 points, or 1.11 percent, at 3,218.60. On Tuesday, decliners beat advancers in the market despite gains in the three major indexes. Also, healthcare, consumer staples and utilities, seen as the S&P's most defensive sectors, have led this year's rise on the index. Energy shares were among Wednesday's biggest decliners, with U.S. crude oil prices falling 2.8 percent. Shares of Chevron (CVX.N) were down 1 percent at $117.78. Other declining stocks included ConAgra Foods Inc (CAG.N), which fell 1.9 percent to $34.85 after reporting third-quarter earnings that fell 57 percent, though revenue grew.

First-quarter earnings forecasts have been lowered since the start of the year, with S&P 500 company earnings now expected to have risen 1.6 percent in the quarter compared with a year ago, according to Thomson Reuters data. A January 1 forecast put earnings growth at 4.3 percent. The ADP report showed U.S. companies hired at the slowest pace in five months, far below what economists had expected, though the February report was revised upward. The more widely watched U.S. government jobs report, due Friday, is expected to show 200,000 jobs were created last month.

Stocks on Bursa Malaysia closed slightly higher yesterday, supported by late buying interest which helped pare losses in the earlier session. The volatile market movement was mainly influenced by the long-awaited announcement on the 13th general election. Panic selling was seen on the local bourse, resulting in the key index falling more than 50 points, an hour before the prime minister went “live” over television for the announcement of the dissolution of the Parliament to pave the way for the general election. However, the FBM KLCI started to stabilise later as investors resumed their activities and began bargain hunting. FKLI spot month contract opened lower this morning at 1,678.5 but soon reached a high of 1,698.50.

Today’s Support and Resistance for April contract is located around 1,670 and 1,700 respectively.