NEW YORK - serious doubts on the health of the use of the market and the pace of economic recovery on markets on edge Wednesday.
Stocks fell after the said companies ADP payroll processor added 179 000 new jobs in April, much less that economists expected. Which raises concerns about the monthly report of jobs in the Government in April will reveal when he was released Friday.
In a separate report, the Institute for supply management said its index rose service sector at slower pace in 8 months in April, as many firms expressed doubts about higher food and gasoline prices.
U.S. services industry includes almost everything which is not manufacture - hospitals and developers of software for the mining companies and financial companies. It employs approximately 90 percent of the U.S. workforce, kind of signs of a slowdown in the index of service sector have an impact on the global economy.
"I think we get indications that (the US economy) is not in good health," said Kim Caughey Forrest, research analyst shares at Fort Pitt Capital Group.
Despite this, larger markets are on the rise between 6% and 10% for the year.
Stronger than expected earnings reports led to a market rally that began in mid-April. Now this earnings season is key to its end, the working relationship are more likely to influence the markets over the next two days. The Ministry of labour will publish his gaze weekly on the first time claims for unemployment Thursday morning, followed by the closely monitored monthly report on Friday labor markets.
Economists provides that employers added 185,000 workers in April. The unemployment rate should remain unchanged at 8.8%. If numbers fail, experts believe that the broader markets could fall.
The Dow Jones index fell 83.93 points, or 0.7%, to close at 12,723.58 on Wednesday. The average of 30 big companies is still up to 10 percent for the year.
The standard & poor 500 index fell from 9.30 points, or 0.7%, to 1,347.32. There is an increase of 7% for the year.
The Nasdaq composite index dropped by 13.39 or 0.5%, to 2,828.23. It is 6.6% this year.
Signs that the economic recovery slows dragged also low prices of raw materials. Silver fell for the third day straight, losing 7.5% to $39.39 an ounce. Crude oil slipped by 1.6% to $109.24 per barrel.
And lower prices of oil and metals hurt energy and materials including fortune companies depend on. Mining giant Freeport-McMoRan Copper & Gold Inc. lost 3.9%. Western Petroleum Corp. has lost 2.5%.
Results of strong earnings from Apple, Intel and other companies sent all three indexes 2011 reaches summits over the past two weeks. But some of this excitement is fading now, said Sam Stovall at Standard & Poor's chief investment strategist.
"In a sense, the market is already in the mode of digestion," Stovall said. "Gains were already out, they were so much better than expected." a large part of which has already been taken into account in the course of actions. ?
Earnings results have been mixed Wednesday. Kellogg Co. said its net income fell by 12% as a large manufacturer of cereals most, Treaty of higher fees. The results missed analysts expectations. Kellogg stock fell by 1.2%.
Time Warner, the owner of the Warner Bros and HBO, said that its first-quarter earnings fell 10 percent due to a lack of success in the period films. Advertising revenues bounced, but its shares still fell by 3.3%.
Net income AOL drops sharply as the company reported Internet advertising revenues and lower subscription. Its stock fell by 1.3%.
The binding of yields of rose, sending prices lower. Yield on the Treasury 10-year note fell 3.22% of 3,26% late Tuesday.
More than two actions increased for all those who have fallen on the New York Stock Exchange. Trading volume was $ 4.7 billion shares.
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