S&P Sinks 1% as Oil Falls on Weak Outlook
NEW YORK ( TheStreet) -- U.S. stocks fell the most in five weeks Wednesday as a convergence of sluggish job creation, slow service sector growth and international conflict sent crude tumbling along with energy stocks including Tesoro Corp
Private employers added 158,000 jobs in March, trailing an upwardly revised 237,000 in February and well below the 200,000 jobs that economists were expecting. Services sector growth makes up about 90% of the U.S. economy, according to the ADP National Employment Report. The ADP report is a precursor to a non-farm payrolls report for March due on Friday.
"The quarter is over, so some professional portfolio managers are releasing trades that they had held ... and now that they're past
March's ISM Non-manufacturing report tracking the services sector reinforced concerns about the labor market. The employment index component of the report fell to its softest since November, taking a bite out of the composite index based on indices measuring business activity, new orders, employment and supplier deliveries, pushing it down to 54.4% in March from 56% February. Economists were expecting a dip to 55.8%
"This report, along with the manufacturing ISM and ADP employment, hints that the pickup in momentum evident in the January and February data may not have been maintained into March," John Ryding and Conrad DeQuadros, economists at RDQ Economics in New York, said in a note.
Crude plummeted 2.8% to settle at $94.45 a barrel as inventories rose.
Defense Secretary Chuck Hagel said Wednesday that North Korea's latest actions pose a "real and clear danger and threat" to the United States. Reports emerged that the United States would be sending an anti-ballistic missile system to a base in Guam.
Global Payments Inc.