Market Wrap-Up
The Lowdown
Stocks and many exchange-traded funds dropped slightly on Wednesday after an estimate of private-sector employment showed a bigger-than-expected shedding of jobs in March.
The Dow Jones Industrial Average closed down 51 points, at 10857. The S&P 500 ended down 4, at 1169, and the Nasdaq finished the day down 13 at 2398.
In March the U.S. private sector lost 23,000 jobs, according to an estimate from payroll giant Automatic Data Processing (ADP). Economists surveyed by Dow Jones Newswires had expected to see private payrolls increase by 50,000. In February, private-sector employment decreased by only 20,000. Many investors had been hoping to see positive numbers Wednesday, two days ahead of the government’s monthly nonfarm payroll report, which often moves the market.
Crude-oil prices briefly backed off their highs after the EIA reported an unexpected inventory build. They went back up $1.08 to $83.45 a barrel, a rise that followed reports that the Obama administration will propose allowing offshore oil and natural-gas exploration and development in a large swath of the eastern Gulf of Mexico. The administration plans to announce new steps Wednesday to determine how much oil and natural gas is buried off the coasts of the Middle and Southern Atlantic States, though Obama’s plan wouldn’t allow new oil and gas development off the coasts of Northern Atlantic States or California.
Research In Motion (RIMM) reported an 18% bump in fourth-quarter revenue to $4.1 billion but missed analysts’ estimates, leaving shares lower in after-hours trading.
The Chicago Purchasing Managers’ Index declined in March. Data fell to 58.8% from 62.6% in February. Economists had been anticipating a retreat but this was a bigger decline than expected. Forecasters expected the index to fall to 59.9%, but the report signals solid growth. Readings over 50% indicate overall business expansion.
The Commerce Department reported that factory orders rose for the 10th time in the past 11 months. Inventories and backlogs increased by the most in more than a year, suggesting factories will retain their leading role in the economic recovery. Bookings increased 0.6% after a revised 2.5% gain in January that was larger than previously estimated.
For a detailed rundown on Wednesday’s trading session see our market story.
Winners
Another good day for gold futures pushed shares of the Market Vectors Gold Miners fund (GDX) up 1.3%. The iShares MSCI Brazil Index fund (EWZ) rose 1.2% ahead of a possible change in interest rates now under deliberation.
Losers
The United States Natural Gas fund (UNG) slid 2.7% as oil prices rose and traders anticipated the results of the EIA’s inventory data on Thursday. The iShares MSCI Singapore Index fund (EWS) receded 1.7%, mirroring the decline in the Straits Times Index.
Thursday’s Notebook
Earnings and Conference Calls
CarMax, GeoMet, GigOptix, Movado, Scholastic, Symbion, Worthington Industries
Economic Data
6:00 a.m. Monster Employment Index
7:30 a.m. Challenger Job-Cut Report
8:30 a.m. Jobless Claims
10:00 a.m. ISM Mfg Index
10:00 a.m. Construction Spending
10:30 a.m. EIA Natural Gas Report
4:30 p.m. Fed Balance Sheet
4:30 p.m. Money Supply
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