Macro agenda to dominate; ADP jobs data eyed [HEAT]

• Another set of weak data out of the US on Tuesday showed orders are declining (factory orders: -1.2% MoM) while the consumer is still not ready to take over (consumer income and spending: 0.0% MoM).

• Wednesday's ADP Employment will serve as a solid indicator of (private) nonfarm payrolls data to be released Friday. Also, ISM Non-manufacturing – like its counterpart in manufacturing – is expected to slow down (but still signal expansion). New orders have declined from a high of 62.3 in March to 54.4 in the latest report.

• The 1-yr sales growth forward curve is now turning negative and with margins way above its historical average we expect revisions to the downside in earnings for 2011 soon. This could bring equities lower.