Weak ADP Jobs Report Puts a Chill on Wall Street

Serious doubts about the health of the job market and the pace of the economic recovery put markets on edge Wednesday.

Stocks fell after payroll processor ADP said companies added 179,000 new jobs in April, far fewer than economists had expected. That raised worries about what the government's monthly jobs report for April will reveal when it's released Friday.

In a separate report, the Institute for Supply Management said its service sector index rose at the slowest pace in 8 months in April, as many companies express concerns about higher food and gas prices.

The U.S. service industry includes nearly everything that isn't manufacturing - from hospitals and software developers to financial firms and mining companies. It employs about 90 percent of the U.S. work force, so signs of a slowdown in the service sector index have implications for the overall economy.

"I think we're getting indications that (the U.S. economy) is not that healthy," said Kim Caughey Forrest, equity research analyst at Fort Pitt Capital Group.

Even so, the broader markets are up between 6 percent and 10 percent for the year.

Stronger-than-expected earnings reports led to a market rally that started in mid-April. Now that earnings season is coming to an end, job reports are most likely to sway markets over the next two days. The Labor Department will release its weekly look at first-time applications for unemployment benefits Thursday morning, followed by the closely watched monthly labor market report on Friday.

Economists forecast that employers added 185,000 workers in April. The unemployment rate is expected to remain unchanged at 8.8 percent. If the numbers fall short, experts say the broader markets could fall further.

The Dow Jones industrial average fell 83.93 points, or 0.7 percent, to close at 12,723.58 on Wednesday. The average of 30 large companies is still up 10 percent for the year.

The Standard & Poor's 500 index fell 9.30 points, or 0.7 percent, to 1,347.32. It remains up 7 percent for the year.

The Nasdaq composite index fell 13.39, or 0.5 percent, to 2,828.23. It's up 6.6 percent this year.

Signs that the economic recovery is slowing also dragged down commodity prices. Silver fell for the third day straight, losing 7.5 percent to settle at $39.39 an ounce. Crude oil slipped 1.6 percent to $109.24 a barrel.

And falling prices for oil and metals hurt the energy and materials companies whose fortunes depend on them. Mining giant Freeport-McMoRan Copper & Gold Inc. lost 3.9 percent. Occidental Petroleum Corp. lost 2.5 percent.

Strong earnings results from Apple, Intel and other companies have sent all three indexes to 2011 highs over the past two weeks. But some of that excitement is now fading, said Sam Stovall, chief investment strategist at Standard & Poor's.

"In a sense, the market is already in digestion mode," Stovall said. "The earnings have already come out, they were so much better than expected; much of that has already been factored into share prices."

Earnings results were mixed on Wednesday. Kellogg Co. said its net income fell 12 percent as the world's biggest cereal maker dealt with higher costs. The results missed analysts' expectations. Kellogg's stock fell 1.2 percent.

Time Warner, the owner of Warner Bros. and HBO, said its first-quarter earnings fell 10 percent because of a lack of hit movies in the period. Advertising revenue rebounded, but its shares still fell 3.3 percent.

AOL's net income dropped sharply as the Internet company reported lower advertising and subscription revenue. Its stock fell 1.3 percent.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury note dropped to 3.22 percent from 3.26 percent late Tuesday.

More than two shares rose for every one that fell on the New York Stock Exchange. Trading volume was 4.7 billion shares.

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Major Fraud Alert

The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

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Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

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May 28 2011 at 11:53 PM Report abuse rate up rate down Reply

Reported on Nightly Business Report and News HOur:

277,000 jobs were added in April minus the 33,000 jobs cut by gop governors at the state level.

Republicans sure are trying hard at the federal and state levels to stop the economic recovery even though manufacturing and exports are at highest levels in decades.

May 12 2011 at 5:24 PM Report abuse +1 rate up rate down Reply

My alternativ­e recommenda­tion to The Feral Reserve is to go back to The Constituti­on of The United States where it is clearly stated that the Congress has the sole responsibi­lity to print and coin money and to determine the value of the money. The Treasury Dept. can easily handle the printing process. This would forever eliminate the fraud of paying interest and incurring debt to a privately owned, for profit money printing monopoly, like The Federal Reserve. Declare the "National debt" as null and void due to the massive fraud and unconstitu­tionality of the Federal Reserve Act.. Abolish The Federal Reserve and it's evil servant, the IRS. This nation got along just fine with out an income tax or the IRS for nearly 130 years. That will free up about $750,000,0­00,000 to $1 trillion per year at current expenditur­es. Issue money on a formula that incorporat­es population and gross domestic product. Avoid like the plague getting into gold or silver backed currency because the same oligarchic­al families and businesses who control our economy now through the Federal Reserve have control of the world's gold and silver markets. Return manufactur­ing to this country by what ever means are required. Prosecute those members of government who are found to have committed treason and/or violated their oaths of office. Investigat­e and prosecute those individual­s in and behind The Federal Reserve fraud who have defrauded the American citizens for 98 years.

May 11 2011 at 10:31 AM Report abuse rate up rate down Reply

It’s never going to get any better, don’t look for it, be happy with what you’ve got.

Because the owners of this country don't want that. I'm talking about the real owners now, the BIG Wealthy business interests that control things and make all the important decisions.

Forget the politicians. They are irrelevant. The politicians are put there to give you the idea that you have freedom of choice. You don't. You have no choice! You have OWNERS! They OWN YOU. They own everything. They own all the important land. They own and control the corporations. They’ve long since bought, and paid for the Senate, the Congress, the state houses, the city halls, they got the judges in their back pockets and they own all the big media companies, so they control just about all of the news and information you get to hear. They got you by the b@lls.

They spend billions of dollars every year lobbying, to get what they want. Well, we know what they want. They want more for themselves and less for everybody else, but I'll tell you what they don’t want:

They don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. Thats against their interests.

They don’t want people who are smart enough to sit around a kitchen table and think about how badly they’re getting screwed by a system that threw them overboard 30 years ago. They don’t want that!

You know what they want? They want obedient workers, people who are just smart enough to run the machines and do the paperwork. And just dumb enough to passively accept all these increasingly crappier jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime and vanishing pension that disappears the minute you go to collect it, and now they’re coming for your Social Security money. They want your retirement money. They want it back so they can give it to their criminal friends on Wall Street, and you know something? They’ll get it. They’ll get it all from you sooner or later cause they own this place! Its a big club, and you ain’t in it! You, and I, are not in the big club.

By the way, its the same big club they use to beat you over the head with all day long when they tell you what to believe. All day long beating you over the head with their media telling you what to believe, what to think and what to buy. The table has tilted folks. The game is rigged and nobody seems to notice. Nobody seems to care! Good honest hard-working people; white collar, blue collar it doesn’t matter what color shirt you have on. Good honest hard-working people continue, these are people of modest means, continue to elect these rich politicians who don’t Care about you.

They don’t care about you at all. And nobody seems to notice. Nobody seems to care. Thats what the owners count on. The fact that Americans will probably remain willfully ignorant of the big red, white and blue !@#$ thats being jammed up their @$$holes everyday, because the owners of this country know the truth.

Its called the American Dream,because you have to be asleep to believe it

RIP GEORGE CARLIN--- Goto YOUTUBE and watch this video type in "george carlin american dream"

May 08 2011 at 12:43 PM Report abuse rate up rate down Reply

Over 2 million jobs in 14 months
Gas prices go down as soon as an investigation is launched by dems
Stock market making significant gains
Manufacturing and export gains for 21 months - but Obama is just on vacation when negotiating trade for american workers.
Those ground breaking ceremonies Obama attended - they're now hiring at $12 to $18 an hour - but he was just campaigning.
Almost all auto workers are back to work - this equals a million jobs, but it was wrong to save our US auto industry.
Wake up - it's the gop who has sold out american workers and it is the democrats who are fighting for american families.

May 07 2011 at 9:53 AM Report abuse +1 rate up rate down Reply

What has President President Obama and Democrats done?
* Over 2 million job creation in 14 months
* 21 months of manufacturing gains
* 21 months of export gains
* Retail sales up
* New construction permits up
* Demand for machinery and equipment way up from 100% write offs for improvements made in this country
* Trade deficit actually has seen a decline
* Illegal Immigration: Passed legislation holding businesses accountable for hiring illegals – no job, go home.
* Dow has gone from 6500 to 12,600
* IRS given resources to go after offshore accounts with over 14,000 coming forward
* Eliminated incentives for corporations to go overseas
* Eliminated 2004 gop for overseas profits to be taxed at 5%
* Passed legislation that addresses the problems of the 2002 gop banking legislation that allowed predatory lending and less oversite on wallstreet, banks, and mortgage companies
* And those ground break ceremonies he attended – now hiring at $12 to $18 an hour (but he was just campaigning)
* In 2007 dems took money away from big oil and steered it toward our auto industry for R&D with mandates for better mileage and now low and behold we have suv's that get 32 mpg as well as waiting lists for chevy volts and almost all auto workers have returned to work
* Electric batteries, charging stations, and wind turbines slated overseas under Bush are being built here now
* National debt – President Obama directed the secretary of defense to come up with wasteful spending in defense because this is a huge part of the budget and doubled under Bush. The secretary of defense reported this to congress in January. How much did Boehner and the gop cut from defense? $3 billion. Ryan’s budget? Zero. Obama? $400 billion over 12 years.

And now the gop governor of Maine is changing child labor laws so they too can work longer for less. Every day it’s another attack on working families from the gop.They continue to cut jobs and wages while fighting for more tax cuts for the wealthy and corporations. Same old gop failed policies. I'd say Obama and dems have stepped on a few toes.

May 07 2011 at 9:48 AM Report abuse rate up rate down Reply

What does the Republican job bill say? And did it pass?

May 05 2011 at 8:26 AM Report abuse -1 rate up rate down Reply
1 reply to jdrumerrnr's comment

There was no republican jobs bill. But they are fighting to bring back their legislation for incentives to go overseas as well as their 2004 legislation that taxed those overseas profits at 5%.

Our manufacturing sector has grown over 20 months now with demand for machinery and equipment way up because of dems legislation for 100% write offs on improvements made in this country for 2011. This is what works - not trickle down.

May 07 2011 at 9:41 AM Report abuse +1 rate up rate down Reply
Party Bus Dc

Here is a similar story

US STOCKS fell yesterday, with commodity producers driving a third straight loss for the Standard and Poor’s 500 Index, as lower than estimated reports on service industries and job growth dampened optimism in the economy.

Stock-index futures fell before the start of trading as an ADP Employer Services report showed that employment at US companies increased by 179,000 in April.

May 05 2011 at 4:49 AM Report abuse rate up rate down Reply
1 reply to Party Bus Dc's comment

There are reports from the financial sector saying there were 244,000 jobs added for April.

May 07 2011 at 9:43 AM Report abuse +1 rate up rate down Reply

To me this is all so simple. I am speaking in general terms here. When asked in polls most people also agree (in general) that they are unhappy with the direction of our country.
Clearly to me, It all comes down to ideology.
Let me ask you all now, about the Fundlmental Transformation of America promised to come by our president elect. Initially, and with total control of Congress and one party rule...has our country, after 2 years, better off?
We are in for a long hard and slow recovery according to many. How's it all working out for you? If you feel hopeful , keep the dream alive and continue the same come 2012 for 4 more years.

May 05 2011 at 3:32 AM Report abuse rate up rate down Reply
1 reply to Richard's comment

The dems eliminated the gop's incentives for corporations to go overseas to make record profits as well as the gop's 2004 legislation that taxed those overseas profits at 5%. Now the gop is fighting to bring them back saying it creates jobs when it clearly does not.

May 07 2011 at 9:45 AM Report abuse +1 rate up rate down Reply

Good coment Carol!!! Until most people put down their Ipads, Itouches and X-boxes and actually take an interest in OUR future, this country is doomed! When Apple releases a new product, MILLIONS line up for it, yet when taxes, gas and food goes up and up, most just sit there and bitch saying.."hey, I least I got the newest Iphone..."
I want to ask these IDIOTS that if you DON'T go out and buy everything brand new, the price WILL come down if no one buys it as soon as it comes out...don't you get that???? I could go on forever with this...I want "common-sense Government"..oh wait, isn't that an oxymoron...lol

May 05 2011 at 12:43 AM Report abuse +2 rate up rate down Reply