With a disappointing batch of U.S. economic data generating selling pressure, stocks have moved notably lower in morning trading on Thursday. The major averages have slid firmly into negative territory, adding to the steep losses posted in the previous session.
The weakness on Wall Street stems from the release of some troubling economic reports, including a report from ADP showing weaker than expected private sector job growth. The report provided further signs of sluggishness in the labor market ahead of tomorrow's key Labor Department report.
A Commerce Department report showing slower than previously estimated first quarter GDP growth has also helped to drag stocks lower along with a report showing that Chicago-area business activity expanded at a much slower rate in the month of May.
After helping to lead the markets lower in the previous session, oil service stocks are seeing some further downside amid a continued decrease by the price of crude oil. With crude for July delivery sliding $1.36 to $86.46 a barrel, the Philadelphia Oil Service Index is down by 3.7 percent.
Steel stocks are also seeing substantial weakness amid concerns about the outlook for demand, with the NYSE Arca Steel Index down by 3 percent. Natural gas, housing, computer hardware, and health insurance stocks are also posting steep losses amid another day of broad based weakness.
The major averages have seen some further downside in recent trading, hitting new lows for the session. The Dow is down 102.17 points or 0.8 percent at 12,317.69, the Nasdaq is down 33.92 points or 1.2 percent at 2,803.44 and the S&P 500 is down 14.28 points or 1.1 percent at 1,299.04.
by RTT Staff Writer
For comments and feedback: email@example.com