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Payrolls, service data lead calendar

David Russell (david.russell@optionmonster.com)

Today's calendar features macroeconomic data on both sides of the Atlantic.

Germany, France, and the Eurozone will report non-manufacturing purchasing managers indexes early in the session, which could affect market sentiment.

Attention turns to the U.S. data at 8:15 a.m. ET, when ADP reports private sector payrolls for May. Economists expect that 157,000 jobs were added, up from 119,000 in April.

The Institute of Supply Management follows with its service-sector report at 10 a.m. ET. A reading of 53.5 is forecast, compared with 53.1 the previous month.

While higher readings on both payrolls and ISM would normally be bullish, the market could react differently because strong reports might make traders think that the Federal Reserve will reduce easy-money policies that have helped propel stocks higher.

The central bank will also report its Beige Book survey of the national economy at 2 p.m. ET, which could also sway sentiment.

Tomorrow's calendar brings an interest-rate decision from the European Central Bank, May same-store sales, and weekly jobless claims. The pivotal non-farms payrolls report follows Friday morning.

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