Choppy Markets in New York, Gains in Private Employment and Service Sector

Nichole Harper
03 Oct, 2012
New York City

Stocks on Wall Street were choppy after the private sector added more than expected jobs and the index of service sector expanded faster than expected in September.

[R]10:30 AM New York – Stocks on Wall Street were choppy after the private sector added more than expected jobs and the index of service sector expanded faster than expected in September.[/R]

Stocks declined in choppy trading after reports on private sector employment and service sector.

The service sector expanded more than expected in September according to the Institute for Supply Management.

The non-manufacturing index in the month increased to 55.1 from 53.7 in August. A reading above 50 indicates expansion in the sector.

Private sector added 162,000 jobs in September according to the latest survey released by the payroll processing firm ADP. Investors are anticipating labor market report tomorrow and economists are expecting gain of at least 113,000 jobs in September.

Mark indexes struggled in the early trading and S&P 500 index and the Nasdaq Composite Index jumped around with a gain of 0.2%.

The latest economic data from Europe and China also did not offer any new positive news and the immediate month delivery oil price dropped more than $2 a barrel in early trading.

China’s service sector growth slowed down in September according to a private survey and the euro zone composite index also showed a decline in activities for the eighth month in a row.

The euro zone index of business activities and new orders declined to 46.1 in September and the data are pointing towards a recession in the third quarter in the region.

European markets consolidated gains after the release of data and investors looked ahead to the decisions from the central banks in Europe and UK tomorrow.

Stocks in Review

Best Buy ((BBY)) gained after reports indicated that electronics retailer’s found Richard Schulze and at least four other private-equity funds are looking at financial records of the company that may lead to a $11 billion buyout offer.

Family Dollar ((FDO)) soared 5% after the deep discount retailer reported higher than expected quarterly earnings.

The operator of 7,000 stores said revenues in the quarter increased 10.8% to $2.36 billion and 75 cents a share in earnings. The retailer also guided first quarter earnings per share between 69 cents and 78 cents and full-fiscal year 2013 earnings between $4.10 and $4.40 a share.

Monsanto ((MON)) dropped 3% after the agri-chemical business reported a quarterly loss.