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U.S. Stocks Decline as Investors Weigh ADP Jobs Report




As we see continued increase in hiring for the US although it was lower than expected, two schools of speculations probably exist. The idea that this continued growth may cause the US Federal Reserve to reduce QE or that the lower than expected hiring may suggest a slow down. Either which, stocks fell indicating negative sentiments for now.

U.S. stocks fell, with the Standard & Poor’s 500 Index lower for a second day, after data showing that hiring rose last month fueled speculation the Federal Reserve will taper bond purchases. The S&P 500 (SPX) lost 0.3 percent to 1,625.41 at 9:31 a.m. in New York . The gauge fell 0.6 percent yesterday as economists at Goldman Sachs Group Inc. and Deutsche Bank AG predicted the Fed may curb stimulus as soon as September. “The market is trying to digest what the Fed is doing,” James Gaul, a portfolio manager at Boston Advisors LLC, which oversees about $2.6 billion in assets, said in a phone interview. “The ADP number was not as good as expected but it has limited impact on the market. It is looked at and it may provide a little bit of color toward what investors might expect for Friday’s jobs report.” Equity futures remained lower after a report from the Roseland, New Jersey-based ADP Research Institute showed employers added 135,000 workers in May, up from a revised 113,000 in April. That was fewer than the 165,000 median forecast of 40 economists surveyed by Bloomberg. A Labor Department report on Friday may show employers added 167,000 people to payrolls last month after a gain of 165,000 in April, according to the median of 85 economists’ estimates in a Bloomberg survey. Separate figures today may show factory orders rose and service industries expanded. Both reports are due at 10 a.m. The Fed is scheduled to issue its Beige Book report on the economy at 2 p.m. in Washington . The S&P 500 has alternated between gains and losses for the past seven sessions as Fed policy makers continue to debate whether the economy is strong enough to begin reducing monetary stimulus. Fed Bank of Dallas President […]

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