DJIA, S&P 500 Stumble as NASDAQ Jumps After Private Sector Payroll Report

Michael Teague  |

Wall Street finished off the day of trading holding a mixed bag on Wednesday, as Automatic Data Processing Inc.’s (ADP) monthly employment report showed the private sector adding 238,000 jobs in December, well ahead of expectations for a gain of 200,000, the largest monthly increase for all of 2013.

The Standard & Poor’s 500 was off a slight 0.02 percent, ending the day at 1,837.49 points, while the Dow Industrials were down 0.41 percent to 16,462.74 points, and the NASDAQ went the opposite direction, adding 0.30 percent to close at 4,165.61.

The unexpected good jobs news from the ADP coincided with the Federal Reserve’s release of the minutes from its monthly meeting in December, after which the Central Bank announced the first round of cuts to its $85 billion in monthly asset purchases. For many investors, this was understood less as a preview of what the Department of Labor’s December report will look like than a sign that encouraging economic news would lead to the next phase of stimulus reduction would arrive sooner than later.

On the S&P 500, shares for semiconductor giant Micron Technology (MU) were 10 percent higher after the company’s release on the previous day of an impressive fiscal first-quarter 2014 earnings report showing substantial increases in revenue on both a sequential and a year-over-year basis. Despite this performance, tech shares overall put downward pressure on the benchmark index, with Microsoft (MSFT) , Cisco Systems (CSCO) , and Hewlett-Packard (HPQ) all ending the day lower.

The Dow Industrials struggled as a result of tech stocks as well, with AT&T (T) and Verizon Communications (VZ) joining Microsoft as the index’s biggest losers on the day, followed by IBM (IBM) and Intel (INTC) . Major chemical manufacturer E.I. du Pont de Nemours (DD) led gainers on the Dow, adding over one percent, absorbing some of the bullishness generated by a strong earnings report from rival agricultural chemical manufacturer Monsanto (MON) .

The NASDAQ rose thanks to strong performances from tech hardware manufacturers, with Plug Power Inc. (PLUG) adding nearly 20 percent after announcing a deal with delivery services provider FedEx (FDX) , followed by a nearly 6 percent jump for ON Semiconductor Corp. (ONNN) . Information services provider Riverbed Technology Inc. (RVBD) , Facebook (FB) and Yahoo (YHOO) all ended the day higher.
Healthcare stocks posted notable gains as well, with Galena Biopharma Inc. (GALE) up over 16 percent, followed by a nearly identical performance from Zogenix Inc. (ZGNX) .

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
ADP Automatic Data Processing Inc. 130.00 -2.47 -1.86 6,609,511 Trade
FB Facebook Inc. 143.66 3.47 2.48 24,727,061 Trade
INTC Intel Corporation 47.74 0.66 1.40 29,018,174 Trade
GALE SLS Galena Biopharma Inc. n/a n/a n/a n/a
CSCO Cisco Systems Inc. 44.06 -0.14 -0.32 30,514,833 Trade
VZ Verizon Communications Inc. 55.65 -0.30 -0.54 18,895,816 Trade
ZGNX Zogenix Inc. 37.72 -2.09 -5.25 1,611,280 Trade
FDX FedEx Corporation 185.01 2.82 1.55 4,300,920 Trade
HPQ HP Inc. 21.41 -0.01 -0.05 11,889,427 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
MU Micron Technology Inc. 34.11 0.23 0.68 46,201,721 Trade
T AT&T Inc. 29.75 -0.11 -0.37 44,497,614 Trade
MSFT Microsoft Corporation 103.97 1.08 1.05 49,335,670 Trade
PLUG Plug Power Inc. 1.18 -0.13 -9.92 4,184,088 Trade
CRMUQ Crumbs Bake Shop Inc. Unit 1 Com & Wt 05/05/2016 n/a n/a n/a 0
IBM International Business Machines Corporation 116.65 0.55 0.47 6,290,307 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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