Private payrolls, services index, Conagra earnings: 3 things to watch

By Liz Moyer

Investing.com -- Stocks wobbled on Tuesday after data on job openings and factory orders in February came in weaker than expected.

Investors are awaiting the jobs report from March, which is due out on Friday. Analysts are expecting the economy added 240,000 jobs, a slower pace than a month earlier.

The Federal Reserve will be watching the report and other economic data to make its next move on interest rates. Futures traders have been placing their bets and are fairly evenly divided on a quarter of a percentage point hike in May or a pause by the Federal Reserve.

Weak economic data could convince the Fed that its efforts to quash inflation were paying off. Two events have complicated its calculus on further rate hikes: The banking turmoil in March that many believe has already contributed to a pullback in credit, which will cool the economy, and the decision by major oil-producing nations over the weekend to cut production by another one million barrels a day. While the bank turmoil is contributing to a slowing in the economy, rising oil prices could pressure the inflation number.

Still-tight labor conditions is another factor the Fed will address. Analysts expect Friday's job report, which comes on a day when U.S. stock markets are closed for Good Friday, will show unemployment remained steady at 3.6%.

Here are three things that could affect markets tomorrow:

1. ADP payrolls

The ADP private payroll report is due out at 8:15 ET (12:15 GMT). Analysts expect employers added 200,000 jobs in March.

2. ISM services

The ISM non-manufacturing reading for March is due out at 10:00 ET. Analysts expect it to read 54.5, down from the February reading.

3. Conagra earnings

The food company Conagra Brands, Inc. (NYSE:CAG) is expected to report earnings of 64 cents on revenue of $3.09 billion.