Stocks Fall Weaker On Jobs Data As Presidential Rally Hits Wall; Productivity DipsBy Darren Domirez, UniversityHerald Reporter
With about 105 points or 0.6 percent in afternoon trading, the Dow Jones industrial average was down as much as 132 points. The broader Standard & Poor's 500 stock index was off 0.7 percent while the technology-dominated Nasdaq combined was down 0.8 percent and on track for its ninth down day in the past 10 trading sittings.
Actions generated the new movement when stocks fell to their lowest level in three weeks on Tuesday, as weaker-than-expected manufacturing data in a cut of interest rates in Australia and the Chinese revived worries about global growth and sent investors scampering out of the apparent risk of equities, Market Watch report said.
On Wednesday, the ADP employment number for April came in at 156,000 almost a quarter short from the 200,000 jobs expected, this translates that private payroll gains slowed down slender line in April, ADP said.
The report is seen as a hint to the top-tier nonfarm-payrolls data out on Friday, which are closely monitored as they are holding the hopes in determining the future trail for Federal Reserve interest rates.
Meanwhile, the U.S. trade deficit fell in March to its lowest level in more than a year, but the sink still reflected a rough climate for American exporters and more caution on the part of consumers. The U.S. economy is stuck in low and slow gear where data continually fail meet expectations but are not bad enough to be a threat for a, State Street Global Advisors Chief Investment Strategist Michael Arone said.
Wall Street has been worrying about the recent muscle in foreign currencies against the dollar. The yen is trading at an 18-month high which is expected to put further weight on Japanese exporters and adding to angst over growth. The euro has also been rising. The U.S. struggles with looming economy due to its first-quarter GDP hanging below expectations at 0.5 percent.
Wall Street handicapped the inferences of a presidential race where Donald Trump shows to be the leading nominee for the Republican party while Hillary Clinton continues to keep ahead the race with Bernie Sanders.