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Breaking news: ADP reports fewer jobs than expected in January

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Automatic Data Processing reported the economy added 175,000 private-sector jobs in the month of January. That is below the 193,000 that economists were expecting. ADP also revised the December number down by 11,000 from the 238,000 jobs in December. That initial report raised hopes about the job market, only to have those hopes dashed when the Labor Department reported just 74,000 jobs for the month of December. The markets will also be closely watching the ISM non-manufacturing report this morning. The disappointing results from the ISM manufacturing report is what sent stocks tumbling on Monday.

Some other news to watch this morning: the Federal Reserve will be out in force. Three different officials will speak today, beginning at 10:00 a.m. Eastern with Fed Governor Daniel Tarullo testifying on the Volcker Rule. At 12:30 eastern Philly Fed President Charles Plosser speaks at an economic seminar in Rochester, New York. Watch for comments on the tapering plan. And at 12:40 Eastern, Atlanta Fed President Dennis Lockhart speaks in Birmingham, Alabama. Wall Street will be listening for his take on the economy.

Among stocks to watch today, Google (GOOG) has reached an agreement with the European Union that will end a three-year investigation. Google has offered further concessions to allay anti-trust concerns that the company abuses its power in search results. Under the agreement, Google has agreed to give comparable prominence to three rivals in its search results. The deal would allow Google to avoid a $5 billion fine. The E.U. said the deal will be official once Google's rivals have a chance to give their input.

Twitter (TWTR) will report its first quarterly results since its November IPO after the close today. Analysts are expecting the social networking company to post a loss of $0.02 a share on revenue of $217.8 million dollars. Shares of Twitter are up close to 48% since its IPO last year. And, during the earnings conference call, Twitter will take live questions from Tweets.

Microsoft (MSFT) made it official yesterday, naming Satya Nadella its new CEO. The 22-year Microsoft veteran becomes only the third chief executive in the company's nearly forty-year history. Microsoft's first CEO, Bill Gates, will be taking a more active role in the company he co-founded, giving up his chairmanship to become technical advisor to Nadella.

Time Warner (TWX) reported earnings today that beat estimates by $0.02. Revenue rose 5% to a new record-high for quarterly results and also came in ahead of estimates. Time Warner saw record profits from its HBO, Warner Bros. and Turner entities. The company also announced a $5-billion stock buyback program and a 10% increase in its quarterly dividend.

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