How major United States stock indexes fared Wednesday

Marco Green
October 3, 2019

The private payrolls report, a precursor to the Labor Department's more comprehensive jobs report due on Friday, comes a day after data showed USA factory activity contracted to its lowest level in more than a decade. Treasuries climbed with gold and the yen on demand for haven assets.

The S&P 500 headed for the biggest two-day slump in two months as private payrolls fell short of estimates a day after a manufacturing gauge slumped to the lowest in a decade.

Ford Motor Co shares fell 3.3 percent after the carmaker reported a fall of about five percent in USA auto sales for the third quarter.

All 11 S&P 500 industry sectors light up red, led by 2.1% declines in each industrials, materials, and information technology; the defensive real estate (-0.5%) and utilities (-1.0%) sectors fall the least.

At 11:17 a.m. ET, the Dow Jones Industrial Average was down 463.10 points, or 1.74%, at 26,109.94, the S&P 500 was down 48.60 points, or 1.65%, at 2,891.65. Lower interest rates can crimp the profits banks make from lending, and the yield on the 10-year Treasury fell to 1.60% from 1.64% late Tuesday.

The recent weak data has significantly shaken investor faith in the strength of the domestic economy, which had shown relative resilience in the face of slowing global growth.

"It now seems the amount of time we've been biding and our inability to actually get a trade deal is now actually affecting growth", said Yousef Abbasi, director of USA institutional equities at INTL FCStone. -China trade war. Those fears also increased bets that the Federal Reserve will cut rates this month.

"In addition to ISM yesterday, you had auto sales data".

"Businesses can only stall for so long", Willie Delwiche, investment strategist at R.W. Baird, told The Post. "It raises enough questions about how resilient is the consumer at this point".

"Up until now, the United States manufacturing and other sectors of the economy had remained resilient despite weakness in other economic regions like the Eurozone and China. but now investors are anxious that the largest economy has also caught the cold", Razaqzada said.

The EIA's Weekly Petroleum Status report showed crude oil inventory increasing 3.104 million barrels following an increase of 2.412 million barrels.

Another key indicator due this week is Thursday's report on the services sector.

The S&P 500 and the Dow slipped below their 100-day moving averages for the first time in about a month.

The S&P 500 loses 1.9%, the Nasdaq slides 1.8%, and the Dow is off 2.0% in midday trading.

The Stoxx Europe 600 Index sank 2.6 per cent. Both indexes gained 1.2% in the previous quarter.

The euro advanced 0.2 per cent to US$1.0957.

The Japanese currency strengthened to the lower 107-yen-to-the-dollar level.

Other reports by Click Lancashire

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