US Stocks Fall On Poor Jobs Report
U.S. stocks declined as private reports showed employers unexpectedly cut jobs this month and business activity expand less than forecast.
Boeing Co., Merck & Co. and Home Depot Inc. led declines in the Dow Jones Industrial Average after ADP Employer Services said companies eliminated 23,000 jobs in March, compared with a gain of 40,000 forecast on average by economists in a Bloomberg survey. Goldman Sachs Group Inc. and Morgan Stanley fell as Keefe Bruyette & Woods Inc. cut earnings estimates on weaker investment banking results.
“The ADP numbers disappointed investors,” said Peter Jankovskis, who helps manage about $1.8 billion as co-chief investment officer at Oakbrook Investments in Lisle, Illinois. “Jobs are key to turn consumer spending into something sustainable. Investors in the stock market will be in a wait- and-see mode.”
The S&P 500 slipped 0.4 percent to 1,168.85 at 10:06 a.m. in New York. The Dow fell 43.99 points, or 0.4 percent, to 10,863.43 after closing at an 18-month high yesterday.
Stocks opened lower as the ADP report spurred concern that the job market is not rebounding as strongly as many economists have predicted. Equity benchmarks extended losses as the Institute for Supply Management-Chicago Inc. said its business barometer fell to 58.8 from 62.6 in February. Readings greater than 50 signal expansion. The median economist estimate in a survey was 61.
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