Asia Morning: Largest Reduction in US Private Jobs

On Wednesday U.S. stocks closed mixed as data showed the biggest reduction in private jobs on record...

Trading floor 2

On Wednesday U.S. stocks closed mixed as data showed the biggest reduction in private jobs on record.

The Dow Jones Industrial Average retreated 218 points (-0.9%) to 23,664, the S&P 500 fell 20 points (-0.7%) to 2,848, while the Nasdaq 100 rose 54 points (+0.6%) to 8,984.



Source: GAIN Capital, TradingView


Semiconductors & Semiconductor Equipment (+0.99%), Technology Hardware & Equipment (+0.69%) and Retailing (+0.64%) sectors were market leaders.

On the other hand, Insurance (-3.73%), Utilities (-3.51%) and Energy (-2.63%) sectors were laggards.

FLIR Systems (FLIR +9.6%), Activision Blizzard (ATVI +6.3%) and DaVita (DVA +4.4%) were top gainers, while Occidental Petroleum (OXY -12.5%), Cincinnati Financial (CINF -10.0%) and Mosaic (MOS -8.3%) lost the most.

On the technical side, about 24.80% (22.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 57.4% (54.3% in the prior session) were above their 20-day moving average.

In after-market hours, PayPal (PYPL) jumped 8.2% and LYFT (LYFT) surged 16.8%

Regarding U.S. economic data, the Automatic Data Processing (ADP) employment report showed that the number of private jobs plummeted by 20.236 million in April, the largest monthly loss in the survey's history, and worse than a reduction of 834,665 in February 2009 during the global financial crisis. 

Later today, the U.S. Labor Department will report Initial Jobless Claims for the week ended May 2 (3.000 million expected).

European stocks lacked upward momentum, with the Stoxx Europe 600 Index easing 0.4%. Germany's DAX dropped 1.2%, France's CAC declined 1.1%, while the U.K.'s FTSE 100 edged up less than 0.1%.

U.S. Treasury prices dropped further, as the benchmark 10-year Treasury yield advanced to 0.713% from 0.652% Tuesday. The Treasury Department announced plans to increase the size of its longer-term bond auctions, and to sell $20 billion of its new 20-year bond.  

Spot gold price slid 20 dollars or 1.2% to $1,685 an ounce, ending a three-session rally.

Oil prices saw their rally pause. U.S. WTI crude oil futures (June) slipped 2.3% to $23.99 a barrel, and Brent crude oil futures lost 4.0% to $29.72 a barrel. The U.S. Energy Information Administration reported a build of 4.6 million barrels in crude-oil stockpiles last week, less than an addition of 7.4 million barrels expected.

On the forex front, the ICE U.S. Dollar Index advanced 0.4% on day to 100.21, posting a three-day rally.

More from Indices

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.