Dow Jones:12,723.58 (–83.93) S&P 500:1,347.32 (–9.30) Nasdaq:2,828.23 (–13.39)
US STOCKS fell yesterday, with commodity producers driving a third straight loss for the Standard and Poor’s 500 Index, as lower than estimated reports on service industries and job growth dampened optimism in the economy.
Stock-index futures fell before the start of trading as an ADP Employer Services report showed that employment at US companies increased by 179,000 in April.
The median estimate in a survey called for a 198,000 increase this month. Estimates ranged from a gain of 164,000 to 240,000, according to the Bloomberg. Employment probably increased for a seventh straight month in April, said economists.
Caterpillar and DuPont, among companies most-tied to the economy, fell at least 1.7 per cent to help lead declines in the Dow Jones Industrial Average.
Freeport-McMoRan Copper and Gold and Occidental Petroleum led commodity producers lower, dropping more than 2.4 per cent, as oil and metals sank.
Las Vegas Sands, the US casino company expanding in Asia, slid 7.3 per cent after company profits missed estimates.
Varian shares surged 51.3 per cent to $61.36 while Applied Materials fell 1 per cent to $15.09.
Chip gear maker Novellus Systems rose 6.5 per cent to $32.92.
ConAgra Foods raised its bid for Ralcorp Holdings to $86 a share in cash from $82.
Shares of ConAgra rose 3.1 per cent to $25.51, while Ralcorp, which owns the Post cereal brand, jumped 4.9 per cent to $87.39.
The Dow Jones industrial average fell 83.93 points, or 0.66 per cent, to end at 12,723.58.
The Standard & Poor’s 500 Index was down 9.30 points, or 0.69 per cent, to 1,347.32.
The Nasdaq Composite Index was down 13.39 points, or 0.47 per cent, to 2,828.23.
Oil for June delivery fell 1.6 per cent to $109.24 a barrel in New York.
“We’ve seen some tempering of economic statistics,” said Michael Mullaney, who manages $9.5 billion at Fiduciary Trust in Boston. “We’re going to see some sloppiness in the market until we get a clear indication on whether the sluggishness in economic activity is temporary. Employment growth is critical for the economy becoming self-sustaining,” he said. – (Bloomberg/Reuters)
