U.S stocks ignore Fed and dive on weak data; Dow loses 0.94%
Published May 01, 2013 04:33PM ET
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.94%, the S&P 500 index fell 0.93%, while the Nasdaq Composite index fell 0.89%.
Disappointing economic indicators kept spirits damp on Wednesday.
The Institute for Supply Management said earlier that its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, worse than expectations for a 50.9 reading.
Elsewhere, payroll processor ADP said private-sector nonfarm payrolls rose by 119,000 in April, well below expectations for an increase of 150,000.
ADP's March figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The number is often seen as a precursor to the official monthly jobs report, which is due out on Friday.
Meanwhile the Federal Reserve concluded a monetary policy meeting and left stimulus tools in place, including the Fed's monthly USD85 billion bond-buying program, which weakens the greenback to encourage investing and job-demand, which sends stocks rising.
The Fed kept its benchmark interest rate unchanged at 0.25%, in line with expectations.
Soft data and concerns the April jobs report due out on Friday will disappoint offset news from the Fed, however.
Leading Dow Jones Industrial Average performers included Walt Disney, up 0.43%, Wal-Mart Stores, up 0.42%, and AT&T, up 0.29%.
The Dow Jones Industrial Average's worst performers included Verizon Communications, down 2.82%, Merck, down 2.79%, and Cisco Systems, down 2.53%.
European markets were closed on holiday, though in the U.K. the FTSE 100 finished up 0.33%.
On Thursday, the U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance.
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Written By: Investing.com
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