Stock Market News for April 02, 2015 – April 2, 2015 – Zacks.com
Benchmarks ended the first trading session of the second quarter in the red on weak economic data. Both private payrolls and manufacturing data were weaker than anticipated. The S&P 500 closed below its 50-day moving average, with 7 out of 10 S&P 500 sectors ending in the red. The Dow also witnessed more than two-third of its 30 components ending in negative territory.
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The Dow Jones Industrial Average (DJI) declined 0.4%, to close at 17,698.18. The Standard & Poor’s 500 (S&P 500) also decreased 0.4% to 2,059.69. The tech-laden Nasdaq Composite Index closed at 4,880.23; losing 0.4%. The fear-gauge CBOE Volatility Index (VIX) dropped 1.2% to settle at 15.11. A total of about 6.9 billion shares were traded on Wednesday, higher than the last five trading sessions’ average of 6.5 billion. Advancers outpaced declining stocks on the NYSE. For 51% stocks that advanced, 45% declined.
Private sector job additions were weaker than expected in March. The national employment report from Automatic Data Processing, Inc. (ADP – Snapshot Report) showed 189,000 private jobs were added in March, less than expectations of an increase of 230,000 jobs. March’s job additions were also lower than February’s revised figure of 214,000.
The weak ADP report on private-sector hiring came in ahead of Friday’s nonfarm payroll data for March. Total non-farm payroll accounts for approximately 80% of the workers who produce the entire GDP of the United States. Analysts are expecting an addition of 247,000 nonfarm payroll jobs in March, less than February’s figure of 295,000. However, they believe the unemployment rate will remain unchanged at 5.5%.
Meanwhile, manufacturing activity in the U.S. expanded at the slowest pace in March since May 2013. The Institute for Supply Management reported its March PMI had dropped 1.4 percentage points from February’s reading of 52.9% to 51.5%. The drop to 51.5% in March was more than the consensus estimate of a decrease to 52.7%. Additionally, the New Orders Index declined 0.7% from February to 51.8% in March. However, the Production Index stood at 53.8%, increasing a meager 0.1 percentage points from February’s reading of 53.7%.
Separately, the US Census Bureau of the Department of Commerce reported construction spending of $967.2 billion in February. This was down 0.1% from revised January estimate of $967.9 billion. This decrease in the payout by builders on residential and nonresidential structures was in line with the consensus estimate.
U.S. auto sales report showed domestic-made vehicle sales climbed to an annualized rate of 13.7 million in March, more than the consensus expectation of an increase to 13.2 million. Ford Motor Co. (F) and General Motors Company (GM) reported year-on-year declines in U.S. vehicle sales in March by 3.4% and 2.4%, respectively. Shares of Ford Motor and General Motors declined 1.4% and 2%, respectively.
On the other hand, Fiat Chrysler Automobiles N.V. (FCAU – Snapshot Report) and Toyota Motor Corporation (TM – Snapshot Report) said their March sales figures in the U.S. increased 1.7% and 4.9%, respectively. Shares of Fiat Chrysler Automobiles gained 0.3%. However, shares of Toyota Motor decreased 1%.
The Health Care Select Sector SPDR (XLV) declined 1%, the highest among the S&P 500 sectors. Bio-tech stocks contributed to the sector’s underperformance. Biogen Idec Inc. (BIIB – Snapshot Report), Celgene Corporation (CELG), Vertex Pharmaceuticals Incorporated (VRTX – Analyst Report) and Regeneron Pharmaceuticals, Inc. (REGN – Snapshot Report) decreased 2%, 0.6%, 1.3% and 2.3%, respectively.
The SPDR S&P Homebuilders ETF (XHB) declined 0.9% and was the second biggest loser among the S&P 500 sectors. Key holdings including Ryland Group Inc. (RYL – Snapshot Report), Toll Brothers Inc. (TOL), and The Home Depot, Inc. (HD) decreased 1%, 0.5% and 0.4%, respectively.
Separately, the Industrial Select Sector SPDR (XLI) declined 0.7% due to decline in transportation stocks. Airline companies led the decline among transportation stocks. Delta Air Lines Inc. (DAL), American Airlines Group Inc. (AAL) and United Continental Holdings, Inc. (UAL) dropped 3.8%, 4.4% and 4.8%, respectively.
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Stock Market News for April 02, 2015 – April 2, 2015 – Zacks.com
