the republic logo

US markets move lower as jobs survey, manufacturing data disappoint; European markets gain

bug
Share/Save/Bookmark

U.S. stocks moved lower in afternoon trading Wednesday, as discouraging economic reports on manufacturing, jobs and construction spending stoked concerns about corporate profits and global growth. The slide extended the market's losses from the day before. Health care stocks were among the biggest decliners. Oil prices surged.

KEEPING SCORE: The Dow Jones industrial average fell 83 points, or 0.5 percent, to 17,692 as of 1:18 p.m. Eastern. The Standard & Poor's 500 index lost nine points, or 0.5 percent, to 2,058. The Nasdaq composite shed 36 points, or 0.8 percent, to 4,863.

THE QUOTE: "We're seeing a bit of a pullback here the last couple of days," said James Liu, global market strategist for J.P. Morgan Asset Management. "The concerns right now are obviously around global growth and, this morning, around U.S. economic growth."

HIRING SLOWS: Payroll processor ADP said that U.S. companies added a seasonally adjusted 189,000 jobs last month. That was below market expectations for an increase of around 250,000. Though ADP's survey doesn't always tally with official numbers, the figures may prompt some analysts to reduce forecasts for the government's next monthly jobs tally, due out Friday.

MANUFACTURING MALAISE: The Institute for Supply Management said its U.S. manufacturing index slipped in March, the fifth monthly decline in a row. The slowdown comes as factory orders have been growing more slowly.

CONSTRUCTION SPENDING: The Commerce Department said that U.S. construction spending declined in February for the second month in a row. The decline was largely due to a 1.4 percent slide in private spending on construction of single-family homes. That's the biggest drop since 2010.

PHOTO: Trader Frederick Reimer works on the floor of the New York Stock Exchange, Wednesday, April 1, 2015. U.S. stocks moved lower in early trading Wednesday, extending losses from the day before. A report indicating that U.S. businesses slowed their pace of hiring last month weighed on the market. (AP Photo/Richard Drew)
Trader Frederick Reimer works on the floor of the New York Stock Exchange, Wednesday, April 1, 2015. U.S. stocks moved lower in early trading Wednesday, extending losses from the day before. A report indicating that U.S. businesses slowed their pace of hiring last month weighed on the market. (AP Photo/Richard Drew)

SECTOR MONITOR: Seven of the 10 sectors in the S&P 500 fell, with health care stocks leading the decline. The sector was down 1.5 percent. Telecommunications stocks rose the most. Macerich notched the biggest drop among all stocks in the S&P 500, sliding $4.82, or 5.7 percent, to $79.51. Macerich slumped after rival Simon Property Group called off its hostile $16.8 billion takeover bid for the shopping mall operator.

PUMPING THE BRAKES: Shares in Ford Motor and General Motors fell after the automakers reported a drop in U.S. sales in March. Ford shed 25 cents, or 1.5 percent, to $15.89. GM lost 68 cents, or 1.8 percent, to $36.82.

BAD QUARTER: Supply-chain services company UTI Worldwide slumped 17.1 percent after the company reported a wider fourth-quarter loss and cut its guidance. The stock fell $2.10 to $10.20.

LOW FLYERS: Shares in American Airlines Group and Delta Air Lines encountered some turbulence. American fell $2.41, or 4.6 percent, to $50.38, while Delta slid $1.81, or 4 percent, to $43.14.

STUDY BOOST: Shares in Dyax surged 46.7 percent after the biotechnology company's potential inflammatory condition treatment met key goals in a study, meriting a faster FDA review. The stock added $7.82 to $24.58.

EUROPEAN MARKETS: European shares rebounded from early losses as a monthly survey showed factory output at a 10-month high in March. Germany's DAX rose 0.3 percent, while France's CAC-40 rose 0.6 percent. Britain's FTSE 100 gained 0.7 percent.

ENERGY: Benchmark U.S. crude jumped $2.73, or 5.8 percent, to $50.36 a barrel on the New York Mercantile Exchange.

BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.86 percent from 1.93 percent late Tuesday.

Think your friends should see this? Share it with them!

Story copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


Photo Gallery:
PHOTO: Trader John Panin works on the floor of the New York Stock Exchange, Wednesday, April 1, 2015. U.S. stocks moved lower in early trading Wednesday, extending losses from the day before. A report indicating that U.S. businesses slowed their pace of hiring last month weighed on the market. (AP Photo/Richard Drew)
Click to view (2 Photos)
We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2015 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.