Late Sell-Off Sinks Stocks

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ADP employment survey released on Wednesday revealed a 130,000 increase in January up from a 37,000 gain in December. Adding

back government job growth and correcting for a bias in ADP data brings the figure closer to around 150,000 and well above the 55,000 expected by markets, according to S&P Economics.

March WTI crude oil futures rose 69 cents to $92.33 per barrel Wednesday after the Fed cut rates. A weekly Energy Dept. report showed crude oil stocks rose by a more than expected 3.6 million barrels to 293.0 million barrels. Crude oil inventories are in the lower half of the average range for this time of year.

Among Wednesday's stocks in the news, Yahoo (YHOO) says it will cut 1,000 jobs as CEO Jerry Yang says the company continues "to face headwinds this year." The firm reported earnings of 15 cents per share in the fourth quarter, vs. 19 cents a year ago, despite an 8% rise in revenue.

Boeing (BA) posted earnings of $1.35 per share, vs. $1.30 a year ago, as revenue was flat. The firm lowered its 2008 revenue predictions to the delay in its production of the 787 aircraft. However, Boeing raised its 2008 earnings guidance, citing productivity gains.

Kraft Foods (KFT) reported earnings of 38 cents per share, unchanged from a year ago, as revenue rose 11%. The company expects revenue to grow at least 4% in 2008, up from previous estimates.

Illinois Tool Works (ITW) posted earnings of 87 cents, vs. 73 cents a year ago, as revenue rose 19%. It sees total revenue growth of 8 to 11% in the in the first quarter.

Eastman Kodak (EK) reported earnings of 71 cents per share, vs. 6 cents a year ago, as revenue rose 3.7%.

Aflac (AFL) plans to accelerate repurchases of 12 million shares of its stock and increase its dividend 17.1%.

European indexes finished in the red Wednesday. The FTSE 100 index in London fell 0.81% to 5,837.30, France’s CAC 40 index lost 1.37% to 4,873.57, and Germany’s DAX index edged down 0.26% to 6,875.35.

Asian stock markets ended with losses Wednesday. Japan’s Nikkei 225 index fell 0.99% to 13,345.03. Hong Kong’s Hang Seng index dropped 2.63% to 23,653.69. Shanghai’s benchmark index was down 0.9% to 4,417.85.

Treasury market

Treasuries dropped in price Wednesday as the Fed altered the language in the FOMC statement to a slightly less negative stance about risks to the economy. eased. Attention now turns to the January labor report Friday.

The 10-year note sank 18/32 to 104-02/32 for a yield of 3.74%, while the 30-year bond tumbled 43/32 to 109-06/32 for a yield of 4.43%.