Stocks still ended down on the day, but it wasn’t the pumelling that it looked like it might’ve been with two hours to go. Chalk it up to the dreaded “buy programs” or whatever, but after a pretty sloppy start, the Dow ended down just 65 points. The NASDAQ dropped 10.88, and the S&P 500 gave up 12.97.
We won’t try to pretend that today was “profit taking” or really anything that anyone can put their finger on.
The Pragmatic Capitalist notes, however, that the economic news today was in no way “better than expected”, which may damp down the euphoria of the green shoots-crowd.
Markets were bombarded with economic news this morning and for the first time in a long time none of the reports came in “better than expected”. The ADP employment report came in worse than expected with 532K job losses. Factory orders came in at 0.7% which was worse than the 0.9% analysts had expected. And the ISM non-manufacturing number came in at 44 which was lower than the 45 analysts had been expecting.
The ADP is further sign that the jobs situation remains very strained. Though not nearly as consistent or important as the Non-farm Payrolls figure due Friday morning the ADP still shows a clear downtrend – not a welcome sign for those relying on a green shoot theory and a sharp housing rebound.
Factory orders showed some signs of strength, though worse than expected. Orders came in at 0.7% for the month. Durable orders jumped 1.7%. All in all, these are still very weak figures coming off of such a low base.