Stocks have moved notably lower in early trading on Thursday on the heels of a batch of disappointing U.S. economic data. The major averages have slid firmly into negative territory after opening the session near the unchanged line.
The weakness that has emerged on Wall Street comes following the release of a slew of U.S. economic data, including reports providing further signs of sluggishness in the labor market.
Before the start of trading, Automatic Data Processing (ADP) released a report showing weaker than expected private sector job growth in the month of May, while the Labor Department reported an unexpected increase in weekly jobless claims.
A Commerce Department report showing slower than previously estimated first quarter GDP growth has also helped to drag stocks lower along with a recent report showing that Chicago-area business activity expanded at a much slower rate in the month of May.
With the price of crude oil extending a recent downward move, oil service stocks are helping to lead the markets lower once again. The Philadelphia Oil Service Index has fallen by 2.2 percent, adding to the 3.9 percent loss it posted on Wednesday.
Housing stocks have also come under considerable selling pressure, dragging the Philadelphia Housing Sector Index down by 1.8 percent. Steel, natural gas, computer hardware, and health insurance stocks are also posting notable losses, moving to the downside along with most of the major sectors.
The major averages have edged up off their lows for the session in the past few minutes but remain in the red. The Dow is down 45.98 points or 0.4 percent at 12,373.88, the Nasdaq is down 23.21 points or 0.8 percent at 2,814.15 and the S&P 500 is down 8.67 points or 0.7 percent at 1,304.65.
by RTT Staff Writer
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