Midday Market Commentary For 04-03-2013
Markets continued to move down during the morning session following disappointing US financial reporting this morning. Low to moderate volume continues to give credence to a weaker than expected market place.
By noon the averages had stopped their decline, as least for now, and are trending sideways. Several gaps formed a few sessions ago have been closed in the process paving the way for more upwards travel if Mr. Market so desires.
Stocks have moved to the downside over the course of early trading on Wednesday following the release of a pair of disappointing economic reports. The major averages have moved moderately lower after ending the previous session firmly in positive territory.
The major averages are currently posting modest losses, near their lows for the young session. The Dow is down 31.98 points or 0.2 percent at 14,630.03, the Nasdaq is down 10.27 points or 0.3 percent at 3,244.59 and the S&P 500 is down 6.24 points or 0.4 percent at 1,564.01.
The weakness on Wall Street comes following the release of a report from payroll processor Automatic Data Processing, Inc. (ADP) showing that private sector employment in the U.S. rose by much less than expected in the month of March.
ADP said private sector employment increased by 158,000 jobs in March compared to economist estimates for an increase of about 205,000 jobs.
While the report also showed that the private sector job growth for February was upwardly revised to 237,000 from 198,000, the job growth for January was downwardly revised to 177,000 from 215,000.
Further selling pressure was generated by the release of a separate report from the Institute for Supply Management showing an unexpected slowdown in the pace of service sector growth in March.
The ISM said its non-manufacturing index dipped to 54.4 in March from 56.0 in February, although a reading above 50 indicates continued growth in the service sector. The drop surprised economists, who had expected the index to come in unchanged.
Following yesterday’s weaker than expected reading on manufacturing activity, the reports have added to concerns about the economic impact of the sequester.
Housing stocks are seeing considerable weakness in early trading, with the Philadelphia Housing Sector Index down by 1.9 percent. The loss extends a recent downward move by the index, which has fallen to its lowest intraday level in a month.
Healthcare provider, financial, and airline stocks have also come under pressure, moving to the downside along with most of the other major sectors.
The DOW at 12:15 is at 14609 down 53 or -0.36%.
The SP500 is at 1561 down 9 or -0.59%.
SPY is at 156.00 down 0.83 or -0.54%.
The $RUT is at 924.35 down 10 or -1.06%.
NASDAQ is at 3237 down 18 or -0.55%.
The longer trend is up, the past months trend is bullish, the past 5 sessions have been neutral to bullish and the current bias is down.
WTI oil is trading between 97.30 and 95.15 today. The session bias is bearish and is currently trading down at 95.30.
Brent crude is trading between 110.35 and 107.84 today. The session bias is bearish and is currently trading down at 108.07.
Gold fell from 1602.75 earlier to 1563.50 and is currently trading down at 1566.04.
Dr. Copper is at 3.34 down from 3.40 earlier.
The US dollar is trading between 83.24 and 82.79 and is currently trading up at 82.88, the bias is currently bearish to neutral.
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Written by Gary