Stocks on Wall Street were lower on Wednesday after weak readings on service-sector growth and private-sector employment.
The Standard Poor’s 500-stock index was down 0.1 percent, the Dow Jones industrial average was 0.7 percent lower, and the Nasdaq composite index slid 1.1 percent in afternoon trading. The S.P. 500 had been near its record level of 1,576.09 points for the last several sessions.
Investors had expected market movements to be modest ahead of the release on Friday of the closely watched nonfarm payrolls report for March, with few major trading catalysts before then.
The latest ADP National Employment Report showed 158,000 private sector jobs were added in March, and the Institute for Supply Management said its services index fell to 54.4 last month.
“People aren’t worried about employment compared to the overall macro outlook, and they have a general idea that the economy is improving,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. “That should allow us to hold firm.”
While data has largely been positive and helped to propel the equity market in the first quarter, a few disappointments have made investors cautious. “Some data has indicated softening, but things should remain quiet until Friday,” Mr. Kaufman said.
In company news, Zynga surged 9 percent said it would begin offering poker and casino-style games in Britain in partnership with Bwin. party Digital Entertainment.
ConAgra Foods fell 0.7 percent. The company reported third-quarter earnings that fell 57 percent even as revenue grew.
Monsanto rose 1.6 percent after reporting earnings that beat expectations and raising its full-year profit forecast.
Verizon Communications ruled out a full takeover of Vodafone, turning the focus yet again to whether the two telecommunication giants can do a deal over their Verizon Wireless joint venture. New York-listed shares of Vodafone fell 2.9 percent, while Verizon was off 0.4 percent.
Issues in the euro zone will continue to be in focus a day after Cyprus concluded a bailout deal. The plan, which still requires ratification, would mean the country receives a 10 billion euro loan, and that it has until 2018 to carry out measures to shore up its finances. The country’s finance minister resigned after concluding the deal.
While investors have tended to use any market decline as a buying opportunity, the situation in Cyprus has been a major source of market uncertainty in recent weeks. European markets were flat to slightly lower in afternoon trading Wednesday.
Wall Street stocks rose on Tuesday, lifted by health care stocks, after a government decision on payment rates. Strong factory orders data also added to the positive tone.
Article source: http://www.nytimes.com/2013/04/04/business/economy/daily-stock-market-activity.html?partner=rss&emc=rss
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