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U.S. stocks slump despite ADP jobs data; Dow Jones down 0.16%

Published 01/05/2011, 09:53 AM
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Investing.com – U.S. stocks were down after the open on Wednesday, as shares in the commodity sector led markets lower, but losses were capped after the release of significantly better-than-expected data on U.S. non-farm employment.

During early U.S. trade, the Dow Jones Industrial Average shed 0.16%; the S&P 500 index dropped 0.18%, while the Nasdaq Composite index fell 0.12%.

Earlier in the day, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 297K in December, more than the forecast 100K rise.

Meanwhile, shares in the commodity sector were broadly lower as crude oil and metal prices retreated for the second consecutive day.

Shares in metal producer Freeport McMoran Copper & Gold plunged 1.73%, oil and gas giant Chevron saw shares drop 1.17%, while shares in the largest U.S. aluminum producer Alcoa dipped 2.12% after the stock was downgraded by Citigroup.

Meanwhile, shares in the financial sector performed poorly, tracking losses from their European counterparts.

Shares in the third largest U.S. lender Citigroup slumped 0.67%, rival Morgan Stanley saw shares dip 1.09%, while U.S. listed shares of Spain’s biggest bank Banco Santander plunged 3.56%.  

Meanwhile, in earnings news, shares in Family Dollar Stores, the second biggest dollar-store chain in the U.S. tumbled 7.22% after it reported lower-than-expected fiscal first-quarter earnings. The company also lowered its earnings outlook for the second quarter.   

In deals news, shares in the world’s largest maker of mobile-phone chips Qualcomm gained 1.32% after it agreed to acquire rival Atheros Communications for approximately USD3.1 billion. Shares in Atheros jumped 1.39% following the news.

Across the Atlantic, European stock markets were broadly lower. The EURO STOXX 50 tumbled 1.06%, France’s CAC 40 dropped 0.89%, Germany's DAX slipped 1.14%, while Britain's FTSE 100 was down 0.12%.

Later in the day, the U.S. was to publish data from the Institute of Supply Management on service sector activity.


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