* Private jobs, services sector data on tap
* Futures down: Dow 68 pts, S&P 8.8 pts, Nasdaq 12.5 pts
* For up-to-the-minute market news see []
(Updates prices, adds quote, byline)
By Rodrigo Campos
NEW YORK, Jan 5 (Reuters) - U.S. stock index futures fell
on Wednesday as commodity prices dropped for a second day,
pressuring global equity markets.
The U.S. dollar rose against a basket of currencies <.DXY>,
sapping investor appetite for commodities. Oil prices were off
1.4 percent, adding to a 2.4 percent slide Tuesday, while
copper dropped 2 percent from a record in the prior session.
Shares of Dow component Alcoa Inc <AA.N> dropped 2.2
percent to $16.15 in premarket trading.
Investors will scour the December ADP employment report
expected at 8:15 a.m. EST (1315 GMT) for clues about the state
of the labor market. Economists in a Reuters survey forecast
100,000 jobs were created last month versus 93,000 new jobs in
November.
The market "could turn around if you saw good (jobs)
numbers," said Rick Meckler, president of investment firm
LibertyView Capital Management in New York.
"People are looking for a floor in commodities. That also
could provide some support if (prices) turn around," he said.
"You'll see increased volatility, but the trend is moving
higher."
The Reuters/Jefferies CRB commodities index <.CRB> posted
its largest daily percentage drop since mid-November on
Tuesday, after hitting a 26-month high on Monday.
Global food prices rose for a sixth straight month in
December, with the United Nations reporting that a key food
price index hit a nominal record high. For details, see
[].
S&P 500 futures <SPc1> fell 8.8 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> dropped
68 points and Nasdaq 100 futures <NDc1> declined 12.5 points.
At 10 a.m. (1500 GMT), the December ISM non-manufacturing
index is expected to show the services sector continued to grow
last month, adding to recent evidence that the economy is on
the mend. Economists forecast a reading of 55.6 versus 55.0 in
November.
European stocks <> were down 1 percent as this week's
sharp commodities retreat prompted investors to take a breather
after an almost 2 percent rise in stocks in the first two
sessions of the year. []
Portugal cleared its first funding hurdle of 2011 on
Wednesday, keeping short-term borrowing costs within expected
limits, but investors remained uneasy over euro zone debt.
[]
On Tuesday, investors abandoned commodity shares while
fears of lower supermarket profits hit food retailers, sending
the S&P 500 and Nasdaq lower.
(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)
