By Anora Mahmudova and Sara Sjolin, MarketWatch
Private sector adds 189,000 jobs in March
NEW YORK (MarketWatch) -- U.S. stocks began the new month and
quarter on a sour note, with the main benchmarks falling sharply in
early trade as investors assessed a batch of economic indicators
and car sales.
Private-sector job gains were weaker than expected, while a
larger-than-forecast drop in ISM manufacturing index suggested the
economy has slowed down in he first quarter.
Investors also looked at monthly car sales, which showed a drop
in March due, in part, to severe weather. Stocks of General Motors
and Ford took a hit, while shares of Chrysler were higher.
Ahead of the opening bell, futures have maintained what has
become characteristic volatility as big moves in currency markets
appeared to spur a selloff in equities.
The S&P 500(SPX) fell 16 points, or 0.8%, to 2,051, with
nine of its 10 main sectors trading lower. Health-care stocks
swooned, while energy was the only sector still in the green.
The Dow Jones Industrial Average (DJI) dropped 160 points, or
0.9%, to 17,616, as nearly all its 30 components traded with
losses.
The Nasdaq Composite (RIXF) fell 48 points, or 1%, to 4,851.
Early selloff: During Asian hours, the benchmarks dramatically
weakened as the dollar pitched lower against the yen. "It's not
every day you see Nasdaq and S&P futures dropping 1.3% in
around 20 minutes, and 0.7% in three minutes, especially when risk
FX (such as AUD/USD) or copper didn't go along for the ride," IG
chief market strategist Chris Weston said in a note.
He said there was a lot of "head-scratching" going on over just
what triggered the drop in stock futures. It coincided with a fall
for the U.S. dollar against the yen (USDJPY). A lackluster reading
(http://www.marketwatch.com/story/japans-tankan-sentiment-survey-shows-few-gains-2015-03-31)
from the Bank of Japan's tankan corporate-sentiment survey prompted
investors to buy the yen, a perceived haven. The dollar traded at
Yen120.07, compared with Yen120.14 late Tuesday in New York.
Data: Private-sector employment gains continued in March but at
a slower pace than in the prior month
(http://www.marketwatch.com/story/private-sector-adds-189000-jobs-in-march-adp-2015-04-01-8912056).
Employers added 189,000 jobs last month, Automatic Data Processing
Inc. reported Wednesday.
Separately, U.S. manufacturers grew at the slowest pace in March
in almost two years and employment levels also weakened, according
to the The Institute for Supply Management's survey
(http://www.marketwatch.com/story/ism-manufacturing-index-falls-in-march-to-lowest-rate-since-may-2013-2015-04-01).
Outlays for U.S. construction projects decreased 0.1%
(http://www.marketwatch.com/story/february-construction-spending-inches-down-01-2015-04-01)
in February to a seasonally adjusted annual rate of $967.2
billion.
Stocks to watch: Shares of GoDaddy, Inc. (GDDY) jumped more than
30% in its IPO debut.
Shares of major airline companies took a hit after downgrades by
Deutsche Bank.Delta Air Lines (DAL) and American Airlines Group
(AAL) fell nearly 4%.
Twitter Inc.(TWTR) picked up 1% after Jefferies initiated
coverage with a buy recommendation and a $65 price target.
Sarepta Therapeutics Inc. (SRPT) shares rallied 5.2% after the
biotech firm appointed Edward Kaye as interim CEO with immediate
effect and said it is pushing ahead with regulatory and clinical
work needed to gain approval for its lead product candidate.
Other markets: Oil (CLK5) inched up,
(http://www.marketwatch.com/storyno-meta-for-guid) as U.S.-Iran
nuclear talks continued. Gold (GCM5) prices gained, on track to
break a three-day losing streak, as a weaker dollar
(http://www.marketwatch.com/storyno-meta-for-guid) provided
support.
Asian stock markets closed mixed, with China's benchmark
Shanghai Composite Index ending above 3,800 for the first time
since 2008 (http://www.marketwatch.com/storyno-meta-for-guid).
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