GS Goldman Sachs Group Inc

By Ellie Ismailidou and Sara Sjolin, MarketWatch

Dow industrials drop over 120 points; private-payroll gains miss expectations; productivity falls

U.S. stocks opened lower on Wednesday, as investors grappled with a number of weaker-than-expected economic reports that suggested the economy continues to grow at a slow pace.

The S&P 500 was down 13 points, or 0.6%, to 2,050, led by a sharp drop in financial shares, down 1.1%.

The Dow Jones Industrial Average was down 125 points, or 0.7%, to 17,624 shortly after the open, weighed by losses for Travelers Cos. Inc.(TRV) and Goldman Sachs Group Inc.(GS), both down 1.2%

Meanwhile, the Nasdaq Composite began the session down 30 points, or 0.6%, at 4,733.

The ADP employment number for April (http://www.marketwatch.com/story/adp-reports-private-sector-job-gains-slowed-in-april-2016-05-04) came in at 156,000, well short of the 200,000 jobs expected, showing that private payroll gains slowed markedly in April. The report is seen as a precursor to the top-tier nonfarm-payrolls data out on Friday (http://www.marketwatch.com/story/if-the-economy-springs-back-jobs-and-auto-sales-will-lead-the-way-2016-05-01), which are closely watched as they are seen as playing a big part in determining the future path for Federal Reserve interest rates.

Meanwhile, the productivity of U.S. businesses and workers (http://www.marketwatch.com/story/us-productivity-drops-1-in-first-quarter-2016-05-04) fell by a 1% annual rate in the first quarter, marking the fourth decline in the past six quarters.

On the bright side, the U.S. trade deficit shrank in March (http://www.marketwatch.com/story/us-trade-deficit-sinks-17-in-march-to-404-billion-2016-05-04) to its lowest level in more than a year, but the plunge still reflected a tough climate for American exporters and more caution on the part of consumers.

(END) Dow Jones Newswires

May 04, 2016 09:48 ET (13:48 GMT)

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