Major U.S. stock indexes veered lower in morning trading Wednesday, as investors considered what a pair of disappointing economic reports on manufacturing and jobs could mean for corporate profits. Health care stocks were among the biggest decliners. Oil prices surged.
KEEPING SCORE: The Dow Jones industrial average fell 64 points, or 0.4 percent, to 17,711 as of 11:19 a.m. Eastern. The Standard & Poor’s 500 index lost six points, or 0.3 percent, to 2,061. The Nasdaq composite shed 23 points, or 0.5 percent, to 4,876.
THE QUOTE: “We’re seeing a bit of a pullback here the last couple of days,” said James Liu, global market strategist for J.P. Morgan Asset Management. “The concerns right now are obviously around global growth and this morning around U.S. economic growth.”
HIRING SLOWS: Payroll processor ADP said that U.S. companies added a seasonally adjusted 189,000 jobs last month. That was below market expectations for an increase of around 250,000. Though ADP’s survey doesn’t always tally with official numbers, the figures may prompt some analysts to reduce forecasts for the government’s next monthly jobs tally, due out Friday.
MANUFACTURING MALAISE: The Institute for Supply Management said its U.S. manufacturing index slipped in March, the fifth monthly decline in a row. The slowdown comes as factory orders have been growing more slowly.