Weak Economic Data Thrashes Stocks
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Stocks started weaker Wednesday and have yet to gain any traction as a deluge of negative economic data points have weighed heavily on investor confidence.
Heading into the 1PM ET hour, the Dow is down 198, the Nasdaq is down 36 and the S&P 500 is down 20. Wednesday's market action more than erases Tuesday's gains.
Data on the jobs front continued to paint a dire picture. The ADP report showed private sector employment rose just 38,000 last month, well below the 175,000 economists had predicted. The data has already prompted economists to lower estimates on Friday’s important non-farm payrolls number: Goldman Sachs slashed its non-farm jobs estimate from 150,000 to 100,000, Citi cut its estimate by 70,000 to 100,000 and Deutsche Bank lowered its forecast from 225,000 to 160,000.
In addition to jobs, manufacturing data was also weak. The ISM manufacturing index was reported at 53.5, below the consensus of 57.1 and down from a reading of 60.4 during the month of April.
Wednesday’s reports following weak housing and consumer confidence numbers on Tuesday.
Illustrating the nervousness of the market, gold is $12 higher on speculation the Fed will have to ease further to help promote growth.
Heading into the 1PM ET hour, the Dow is down 198, the Nasdaq is down 36 and the S&P 500 is down 20. Wednesday's market action more than erases Tuesday's gains.
Data on the jobs front continued to paint a dire picture. The ADP report showed private sector employment rose just 38,000 last month, well below the 175,000 economists had predicted. The data has already prompted economists to lower estimates on Friday’s important non-farm payrolls number: Goldman Sachs slashed its non-farm jobs estimate from 150,000 to 100,000, Citi cut its estimate by 70,000 to 100,000 and Deutsche Bank lowered its forecast from 225,000 to 160,000.
In addition to jobs, manufacturing data was also weak. The ISM manufacturing index was reported at 53.5, below the consensus of 57.1 and down from a reading of 60.4 during the month of April.
Wednesday’s reports following weak housing and consumer confidence numbers on Tuesday.
Illustrating the nervousness of the market, gold is $12 higher on speculation the Fed will have to ease further to help promote growth.
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