Wall Street Slips on ADP Report Ahead of Friday’s Jobs Numbers

Michael Teague |

Wall Street Slips on ADP Report Ahead of Friday’s Jobs NumbersStocks tumbled on Wednesday as Automatic Data Processing Inc. (ADP), the payrolls processor, reported that the economy added 158,000 jobs during the month of March, shy of estimates of between 198,000 and 215,000.

The ADP’s report is often used to gauge the outlook ahead of the Board of Labor’s monthly job’s report, due out on Friday, and follows on the heels of Tuesday’s weaker-than-expected ISM manufacturing index.

Perhaps even more significantly, San Francisco Federal Reserve president John Williams said that the Fed could begin pulling back on its $85 billion per month quantitative easing plan as early as the summer, possibly ending it by the time 2013 is over, pending expected improvements in the labor market.

On the international political scene, the unusually heated rhetoric coming out of the Korean Peninsula over the last couple weeks took its first tentative swipe at the global economy when the government of North Korea blocked South Korean workers from entering a factory run jointly by the two countries in the border town of Kaesong.



Asian markets, at least, have reflected concern, as Deutsche Bank’s Jim Reid noted this morning that the Korean won had dropped to a 6-month low against the dollar.

The Nasdaq took the hardest hit on the day, down 1.11 percent to 3,218.60, with notable losses taken by online realty service Zillow (Z) down 5.34 percent to $50.16, and Tesla (TSLA), whose CEO Elon Musk’s major announcement on Tuesday about a new $500 per month leasing plan for the company’s model S sedan was poorly received, dragging shares down 7.31 percent to close at $41.40.

The S&P 500 lost 1.05 percent, closing at 1,553.69, with Netflix (NFLX) down almost 3.93 percent to $169.74, and Citigroup (C) dropped 3.65 percent to $42.50, while Oil & Gas stocks contributed significantly to downward pressure on the index.

Meanwhile, the Dow Jones Industrial Average saw only three of its components gain on the day: drug manufacturer Merck & Co. (MRK), and aerospace/defense companies Boeing (BA) and United Technologies (UTX).

Financial stocks were the Dow’s biggest weight, with the top three losers being JP Morgan Chase (JPM), down 2.96 percent to $46.85, Bank of America (BAC) down 2.80 percent to $11.81, and American Express co. (AXP) down 2.05 percent to $66.25.

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. 122.77 1.33 1.10 1,673,480 Trade
TSLA Tesla Motors Inc. 351.56 1.54 0.44 6,218,795 Trade
C Citigroup Inc. 78.59 0.29 0.37 11,571,237 Trade
JPM JP Morgan Chase 114.33 1.32 1.17 12,475,675 Trade
AXP American Express Company 98.32 0.29 0.30 4,983,571 Trade
UTX United Technologies Corporation 135.21 -0.69 -0.51 4,103,780 Trade
RGEN Repligen Corporation 36.29 0.51 1.43 284,846 Trade
NFLX Netflix Inc. 227.58 7.12 3.23 17,777,172 Trade
MRK Merck & Company Inc. (new) 61.25 -0.03 -0.05 12,247,493 Trade
Z Zillow Group Inc. 42.93 0.35 0.82 983,197 Trade

Comments

Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.

Private Markets

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.