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Pre-Market: Twitter, Yelp Earnings on Tap; Private-Sector Job Creation Eases

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ADP counts 175,000 new hires last month.

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Following yesterday's slight rebound, stock futures dipped in pre-market trading today despite a better-than-expected private-sector jobs report. In earnings news, Twitter Inc (NYSE:TWTR) and Yelp Inc (NYSE:YELP) might confirm that Internet companies are improving their monetization of mobile devices.

Ahead of the opening bell, futures on the Dow Jones Industrial Average (INDEXDJX:.DJI) were down 0.10% at 15,323. Futures on the S&P 500 (INDEXSP:.INX) fell 0.17% to 1,740.70 and Nasdaq (INDEXNASDAQ:.IXIC) futures declined by 0.11% to 3,448.25.

Today, ADP, a payroll processing company, said that the US private sector added 175,000 jobs in January. Economists had expected it to count 5,000 fewer hires. In December 2013, ADP counted 238,000 new jobs. This report could mean that the government's employment situation report on Friday might come out strong.

This afternoon, Twitter will release its first earnings statement since going public in November 2013. Wall Street expects the social network to book a net loss of $0.02 per share on $217.8 million in revenue. After Facebook (NASDAQ:FB) boasted encouraging growth in mobile sales, investors are optimistic that Twitter's ad revenue could speed up. Twitter makes 65% of its revenue from mobile. On the earnings call, Twitter executives might shed some light on rumors of upcoming monetization schemes such as e-commerce.

Yelp will also report earnings after the bell. Analysts estimate that the local business-rating company halved last year's quarterly loss to $0.03 per share as revenue rose 63.3% to $67.22 million. However, the site faces stiff competition for local business' advertising dollars from Facebook, Google (NASDAQ:GOOG), and others.

CVS Caremark Corp (NYSE:CVS) announced today that it will stop selling tobacco products by Oct. 1. The national chain makes $2 billion in annual revenue from tobacco, but management says that the decision will not affect full-year earnings guidance. Still, shares of CVS were down 3.2% in pre-market trading.

Time Warner (NYSE:TWX) shares rose 1.4% in the pre-market after the media company announced a $5 billion stock buyback program and higher dividends. For the last quarter, the conglomerate's earnings declined by 12% year-over-year to $1.17 per share, beating expectations by $0.02. Yesterday, Time Warner announced that it plans to spin off its Time Inc magazine business and lay off 500 employees.

Shares of 3M (NYSE:MMM) rose 1.3% today after the corporation announced that it will buy back $12 billion in shares.

Overseas stocks also fell this morning. December 2013 eurozone retail sales fell 1.6% to the lowest level in more than two years.

Federal Reserve members Daniel Tarullo, Charles Plosser, and Dennis Lockhart will all deliver speeches today.

Twitter: @vincent_trivett
No positions in stocks mentioned.
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