(As of 8:00 am pacific)
Stocks open down after disappointing US jobs data and
European woes. Payroll processor, ADP,
reported this morning that the US private sector added 119,000 jobs in April,
the weakest figure in 7 months.
According to ADP, service-sector jobs rose 123,000 while goods-producing
jobs fell 4,000. Manufacturing
employment fell 5,000. ADP also revised
March’s jobs numbers from 209,000 originally reported to 201,000. The markets were cautious, but are
anticipating Friday’s US non-farm payrolls to come in. The Commerce Dept. reported orders for goods
purchased in US factories dropped 1.5% in March, the biggest decline in 3
years, but slightly better than estimates.
In Europe, stocks were down as
markets opened after being closed for yesterday’s May Day holiday. Stocks started the day in positive territory
on yesterday’s gains in the US then quickly turned lower as data released
showed that the seasonally-adjusted unemployment rate in the euro-zone rose to
10.9% in March from 10.8% in February.
Other data released showed Manufacutring PMI in the euro-zone fell at a
faster pace than initially estimated in April.
The Markit purchasing managers index fell to 45.9 from a 47.7 reading in
March, signaling contraction. Individual
countries such as Greece, Italy, and Spain reported accelerating downturns. Germany reported manufacturing PMI fell to a
33 month low of 46.2. In Asia, the broad
market rallied as investors reacted to improved manufacturing data out of China
and the US. Reported earlier in the
week, China’s manufacturing PMI rose to 53.3 in April, up from 53.1 in March,
and showing improvement for the 5th straight month. Oil was down 0.45% to 105.68 and gold was
down 0.40% to 1655.70. US dollar was
mostly up against major currencies while the 10 yr. treasury yield dipped slightly
to 1.91%. 30 yr. mortgage rates remained
at 3.81%. The VIX was up 5.30% to 17.48.
