Stocks trim gains after services economy measure disappoints - CNBC

Stock rose on Wednesday as investors cheered a nearing trade deal between the U.S. and China though softer measures on payrolls and the service economy kept a lid on optimism.

The Dow Jones Industrial Average rose 10 points as UnitedHealth and Home Depot outperformed. The S&P 500 gained 0.25 percent, led by materials and technology stocks. The Nasdaq Composite advanced 0.5 percent.

American and Chinese officials are reportedly closing in on a trade deal, having resolved most of the outstanding issues in their protracted trade dispute. Both countries have levied tariffs on billions of dollars' worth of each other's goods since last year.

According to the Financial Times, Beijing wants Washington to remove existing U.S. duties on Chinese imports, while the Trump administration wants China to agree to enforcement measures that ensure the country sticks to the deal.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are scheduled to meet with Chinese Vice Premier Liu He later on Wednesday to resume talks.

European stocks rose broadly as the Stoxx 600 index gained 0.8 percent. In Asia, the Shanghai Composite surged 1.2 percent, while the Japanese and Korean Kospi indexes both rose around 1 percent.

"To a certain degree, a trade deal is already priced in," said Peter Cardillo, chief market economist at Spartan Capital Securities. However, "a trade deal is a win for the United States and the global economy."

"That will lift a major cloud that's over the global economy," he said.

This comes after a rocky previous session for Wall Street. The Dow fell for the first time in four sessions Tuesday, pulling back from a solid rally at the start of the week.

Gains were capped, however, by weaker-than-expected economic data.

Private payrolls increased by 129000 in March, according to ADP and Moody's Analytics. That is well below a Refinitiv estimate of 173,000. The report from ADP and Moody's is typically seen as a preview for the U.S. government's monthly jobs report, which is scheduled for release Friday morning.

A weaker-than-expected update on the U.S. services sector also capped stock advances throughout the session. Growth in services fell more than expected in March and advanced at its slowest pace in more than 12 months, the Institute for Supply Management reported.

The ISM non-manufacturing index dipped to 56.1 last month, its softest read since August 2017.

A bearish call on Caterpillar shares also kept the market in check. Caterpillar shares fell 1 percent after Deutsche Bank downgraded the industrial giant to hold from buy and slashed its 12-month price target. The bank cited a "collapse" in synchronized global growth.

—CNBC's Ryan Browne contributed to this report.

Let's block ads! (Why?)

https://www.cnbc.com/2019/04/03/stock-market-futures-rise-on-hopes-us-china-are-close-to-trade-deal.html

2019-04-03 14:17:28Z
52780259348633

Stocks Climb; Chip Stocks Lead, Dow Jones Lags - Investor's Business Daily

Stocks grabbed strong early gains Wednesday, with chip stocks leading, as hints of more U.S.-China trade talk progress boosted global optimism.

X

The Nasdaq jumped out to an early lead, up 0.5%. The S&P 500 followed with a 0.3% advance. The Dow Jones Industrials slipped into tight losses, as heavyweights Caterpillar (CAT) and Boeing (BA) fell to the bottom of the index. (For updates on this story and other market coverage, visit the Stock Market Today page.)

Chip stocks shifted firmly higher, with STMicroelectronics (STM) scoring a gap-up open, and Advanced Micro Devices (AMD) and Intel (INTC) rallying on analyst actions.

Amazon.com (AMZN) and Intel were both rising within buy ranges. Micron Technology (MU) rose 5% to lead the Nasdaq 100. AMD topped the S&P 500. Dave & Buster's Entertainment (PLAY) soared after reporting fourth-quarter results late Tuesday.

Caterpillar dropped 0.8% on a downgrade and a price target cut from Deutsche Bank. Boeing slid 1.6% as details from the Egypt Air crash investigation leaked out in news reports.

Dow Jones, S&P 500 Near Fresh Highs

The Dow Jones Industrial Average traded 2.9% below its October high early Wednesday, holding firmly above the 26,000 level. The S&P 500 was 2.3% below its peak from September, maintaining support above the 2,800 mark. The Nasdaq moved to within 3% of its August high. All of the index's 2018 peaks occurred in concert with tariff- or sanction-related policy announcements.

For more detailed analysis of the current stock market and its confirmed uptrend, study the Big Picture.

Chip Stocks: Intel, Advanced Micro Get Buy Ratings

Chip stock Intel jumped 1.8% at the open, after Nomura initiated coverage on the stock with a buy rating. The note placed a price target for the stock at 65, almost 20% above Tuesday's closing price.

Intel remains in a buy range, after topping a 54.20 buy point in a cup-with-handle base in mid-March. Shares remain in buy range through 56.91.

Advanced Micro Devices sparked almost 8% higher, scoring an early breakout. Nomura also initiated coverage on the stock with a buy rating and a 33 price target. AMD's move hoisted it past a buy point at 28.21, in a possible six-month cup-with-handle base. The base is 53% deep, which adds some risk to any potential breakout.

FANGs: Amazon, Netflix Advance

Amazon.com and Netflix paced the FANG stock tech leaders in early action, each with a 0.5% gains. IBD Leaderboard stock Amazon ended Tuesday at the very top of a buy range above a 1,736.51 buy point. The buy range runs through 1823.33.

Netflix possibly received a boost from Tuesday's news that the Justice Department had warned the Academy of Motion Picture Arts and Sciences that barring content from streaming services such as Netflix could violate antitrust laws.

Netflix, an IBD Leaderboard watch list stock, ended Tuesday 1% below a 371.59 buy point in a cup-with-handle base.

Hiring, Service Sector Slow; Mortgage Action Surges

U.S. non-farm private sector employers added 129,000 workers in March, according to ADP's National Employment Report. That was down from 183,000 new hires in February, and well below forecasts for a decrease to 165,000 new jobs. Service sector employers added 135,000 new workers, while employment among goods producers decreased by 6,000. Education and health posted the largest increase: 56,000 new jobs.

Mortgage application activity spiked for a second straight week as mortgage rates posted their biggest one-week drop in a decade, according to the Mortgage Bankers Association. Mortgage application volume swelled 18.6% vs. the prior week and was up 28% over year-ago levels. Refinance applications soared 39% week-over-week, and 58% above year-ago activity.

Researcher Markit reported U.S. service sector activity slowed less than expected in March. Markit's services purchasing managers index settled to 55.3 for the month. Economists had projectged a downshift to 54.8, from February's 56 reading.

The Institute for Supply Management's non-manufacturing index is due out at 10 a.m. ET.

U.S.-China Trade War Final Push?

Chinese Vice Premier Liu He meets with Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Washington, D.C., today, as negotiations push to close what appear to be last-mile gaps in a restructured U.S.-China trade relationship.

Trade optimism sent China's markets higher, with both the Shanghai Composite and Hong Kong's Hang Seng Index taking better-than 1% gains. Japan followed suit, with Tokyo's Nikkei 225 jumping 1%.

China-facing ETFs traded generally higher on U.S. markets. The Direxion Daily CSI 300 China A Share Bull 2X (CHAU) rose 3.3%, the Direxion Daily FTSE China Bull 3X (YINN)  swept 4% higher in opening trade. The iShares MSCI China (MCHI) climbed 1.1%.

Prime Minister Shakes Up Brexit Talks

Prime Minister Theresa May abandoned her effort to muster support for her existing Brexit proposal, offering to compromise with opposition Labour leaders and to implement any deal that was agreed to by a majority of lawmakers. The shift in stance points to a much "softer" Brexit plan than had been favored by May's Conservative party, and points to a less severe change than many Brexiteers had hoped for in the U.K.'s relationship to the European Union.

May plans to request a short delay to the U.K.'s already extended deadline for exit from the trade bloc, currently set for April 12. Europe's markets were mixed on May's strategy, with London's FTSE 100 trading a fraction in the red near midday. Frankfurt's DAX sprung 1% higher and the CAC-40 in Paris gained 0.6%.

Oil Prices Inch Up Ahead Of Data

Oil prices chalked up narrow gains ahead of Energy Information Administration weekly supplies data due out at 10:30 a.m. ET. West Texas Intermediate crept 0.2% higher to $62.72 a barrel. Brent crude gained 0.4% to $69.64. WTI is at its highest level since the first week of November.

Oil-focused ETFs Citigroup Global Markets VelocityShares 3x Long (UWT) slipped 0.4%, the United States Oil Fund (USO) dipped 0.1%, in early trade.

Follow Alan R. Elliott on Twitter @IBD_Aelliott

YOU ALSO MIGHT LIKE:

The Big Picture: These 6 Critical Factors Could Impact Stocks In Q2

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Best Dividend Stocks: 5 High-Yield Stocks Beating The S&P 500

IBD Stock Of The Day Hits New Buy Point After 81% Run

Extend Your Open Access To MarketSmith

Let's block ads! (Why?)

https://www.investors.com/market-trend/stock-market-today/stock-futures-climb-chip-stocks-lead-nasdaq-sp-500-dow-jones/

2019-04-03 14:15:00Z
52780259348633

Stocks Climb; Chip Stocks Lead Nasdaq, S&P 500, Dow Jones - Investor's Business Daily

Stocks grabbed strong early gains Wednesday, with chip stocks leading, as hints of more U.S.-China trade talk progress boosted global optimism.

X

The Nasdaq jumped out to an early lead, up 0.5%. The S&P 500 followed with a 0.3% advance. The Dow Jones Industrials slipped into tight losses, as heavyweights Caterpillar (CAT) and Boeing (BA) fell to the bottom of the index. (For updates on this story and other market coverage, visit the Stock Market Today.)

Chip stocks shifted firmly higher, with ST Microelectronics (STM) scoring a gap up open, and Advanced Micro Devices (AMD) and Intel (INTC) rallying on analyst actions.

Amazon.com (AMZN) and Intel were both rising within buy ranges. Micron Technologies (MU) rose 5% to lead the Nasdaq 100. AMD topped the S&P 500. Dave & Buster's Entertainment (PLAY) soared after reporting fourth-quarter results late Tuesday.

Caterpillar dropped 0.8% on a downgrade and a price target cut from Deutsche Bank. Boeing slid 1.6% as details from the Egypt Air crash investigation leaked out in news reports.

Dow Jones, S&P 500 Near Fresh Highs

The Dow Jones Industrial Average traded 2.9% below its October high early Wednesday, holding firmly above the 26,000 level. The S&P 500 was 2.3% below its peak from September, maintaining support above the 2,800 mark. The Nasdaq moved to within 3% of its August high. All of the index's 2018 peaks occurred in concert with tariff- or sanction-related policy announcements.

For more detailed analysis of the current stock market and its confirmed uptrend, study the Big Picture.

Chip Stocks: Intel, Advanced Micro Get Buy Ratings

Chip stock Intel jumped 1.8% at the open, after Nomura initiated coverage on the stock with a buy rating. The note placed a price target for the stock at 65, almost 20% above Tuesday's closing price.

Intel remains in a buy range, after topping a 54.20 buy point in a cup-with-handle base in mid-March. Shares remain in buy range through 56.91.

Advanced Micro Devices sparked almost 8% higher, scoring an early breakout. Nomura also initiated coverage on the stock with a buy rating and a 33 price target. AMD's move hoisted it past a buy point at 28.21, in a possible six-month cup-with-handle base. The base is 53% deep, which adds some risk to any potential breakout.

FANGs: Amazon, Netflix Advance

Amazon.com and Netflix paced the FANG stock tech leaders in early action, each with a 0.5% gains. IBD Leaderboard stock Amazon ended Tuesday at the very top of a buy range above a 1,736.51 buy point. The buy range runs through 1823.33.

Netflix possibly received a boost from Tuesday's news that the Justice Department had warned the Academy of Motion Picture Arts and Sciences that barring content from streaming services such as Netflix could violate antitrust laws.

Netflix, an IBD Leaderboard watch list stock, ended Tuesday 1% below a 371.59 buy point in a cup-with-handle base.

Hiring, Service Sector Slow; Mortgage Action Surges

U.S. non-farm private sector employers added 129,000 workers in March, according to ADP's National Employment Report. That was down from 183,000 new hires in February, and well below forecasts for a decrease to 165,000 new jobs. Service sector employers added 135,000 new workers, while employment among goods producers decreased by 6,000. Education and health posted the largest increase: 56,000 new jobs.

Mortgage application activity spiked for a second straight week as mortgage rates posted their biggest one-week drop in a decade, according to the Mortgage Bankers Association. Mortgage application volume swelled 18.6% vs. the prior week and was up 28% over year-ago levels. Refinance applications soared 39% week-over-week, and 58% above year-ago activity.

Researcher Markit reported U.S. service sector activity slowed less than expected in March. Markit's services purchasing managers index settled to 55.3 for the month. Economists had projectged a downshift to 54.8, from February's 56 reading.

The Institute for Supply Management's non-manufacturing index is due out at 10 a.m. ET.

U.S.-China Trade War Final Push?

Chinese Vice Premier Liu He meets with Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Washington, D.C., today, as negotiations push to close what appear to be last-mile gaps in a restructured U.S.-China trade relationship.

Trade optimism sent China's markets higher, with both the Shanghai Composite and Hong Kong's Hang Seng Index taking better-than 1% gains. Japan followed suit, with Tokyo's Nikkei 225 jumping 1%.

China-facing ETFs traded generally higher on U.S. markets. The Direxion Daily CSI 300 China A Share Bull 2X (CHAU) rose 3.3%, the Direxion Daily FTSE China Bull 3X (YINN)  swept 4% higher in opening trade. The iShares MSCI China (MCHI) climbed 1.1%.

Prime Minister Shakes Up Brexit Talks

Prime Minister Theresa May abandoned her effort to muster support for her existing Brexit proposal, offering to compromise with opposition Labour leaders and to implement any deal that was agreed to by a majority of lawmakers. The shift in stance points to a much "softer" Brexit plan than had been favored by May's Conservative party, and points to a less severe change than many Brexiteers had hoped for in the U.K.'s relationship to the European Union.

May plans to request a short delay to the U.K.'s already extended deadline for exit from the trade bloc, currently set for April 12. Europe's markets were mixed on May's strategy, with London's FTSE 100 trading a fraction in the red near midday. Frankfurt's DAX sprung 1% higher and the CAC-40 in Paris gained 0.6%.

Oil Prices Inch Up Ahead Of Data

Oil prices chalked up narrow gains ahead of Energy Information Administration weekly supplies data due out at 10:30 a.m. ET. West Texas Intermediate crept 0.2% higher to $62.72 a barrel. Brent crude gained 0.4% to $69.64. WTI is at its highest level since the first week of November.

Oil-focused ETFs Citigroup Global Markets VelocityShares 3x Long (UWT) slipped 0.4%, the United States Oil Fund (USO) dipped 0.1%, in early trade.

Follow Alan R. Elliott on Twitter @IBD_Aelliott

YOU ALSO MIGHT LIKE:

The Big Picture: These 6 Critical Factors Could Impact Stocks In Q2

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Best Dividend Stocks: 5 High-Yield Stocks Beating The S&P 500

IBD Stock Of The Day Hits New Buy Point After 81% Run

Extend Your Open Access To MarketSmith

Let's block ads! (Why?)

https://www.investors.com/market-trend/stock-market-today/stock-futures-climb-chip-stocks-lead-nasdaq-sp-500-dow-jones/

2019-04-03 13:31:18Z
52780259348633

FDA is investigating nearly three dozen reports of seizures after vaping - CNBC

The Food and Drug Administration is investigating nearly three dozen cases of people suffering from seizures after vaping, the agency announced Wednesday.

Between 2010 and 2019, the FDA said it received 35 reports of people, especially kids and young adults, experiencing seizures after using e-cigarettes. However, the FDA said it's unclear whether e-cigarettes caused the seizures.

"While 35 cases may not seem like much compared to the total number of people using e-cigarettes, we are nonetheless concerned by these reported cases," outgoing FDA Commissioner Scott Gottlieb and Principal Deputy Commissioner Amy Abernethy said in a statement.

For more on investing in health-care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.

E-cigarette liquids contain high concentrations of the nicotine. If swallowed, they can be poisonous, often causing nausea, sweating, dizziness and tremors, according to the National Capital Poison Center. In severe cases, nicotine poisoning can cause seizures or even death.

The FDA said the evidence it has analyzed so far doesn't establish a clear pattern or cause for the cases.

"We want to be clear that we don't yet know if there's a direct relationship between the use of e-cigarettes and a risk of seizure," Gottlieb and Abernethy said.

In some instances, people were using e-cigarettes for the first time. In others, they were regular users. Some seizures occurred after a few puffs and others occurred up to one day after people vaped, the FDA said. A few people had a prior history of seizures. In some cases, people had also used other substances like marijuana or amphetamines.

The FDA said several factors may lead to seizures, such as some e-cigarette designs allowing people to get huge amounts of nicotine quickly or some people deliberately inhaling more nicotine than normal. Also, the seizures may have been triggered by something else, like an underlying medical condition or another substance, the FDA said.

"We're sharing this early information with the public because as a public health agency, it's our job to communicate about potential safety concerns associated with the products we regulate that are under scientific investigation by the agency," Gottlieb and Abernethy said

Let's block ads! (Why?)

https://www.cnbc.com/2019/04/03/fda-investigating-nearly-three-dozen-reports-of-seizures-after-vaping.html

2019-04-03 13:15:36Z
52780259253330

Stock Futures Climb; Chip Stocks Lead Nasdaq, S&P 500, Dow Jones - Investor's Business Daily

Stock futures hustled to early gains Wednesday, with chip stocks leading, while some top trade-sensitive Dow Jones stocks lagged.

X

Nasdaq 100 futures led the early gains, swinging 0.6% above fair value. Dow futures and S&P 500 futures hammered out advances of 0.4% apiece. (For updates on this story and other market coverage, visit the Stock Market Today.)

Chip stocks shifted firmly higher, with ST Microelectronics (STM) scoring a big premarket move, and Advanced Micro Devices (AMD) and Cypress Semiconductor (CY) poised for possible breakouts. Intel (INTC) climbed more than 1% to lead the Dow Jones industrials.

Caterpillar (CAT) and Boeing (BA) dropped to the bottom of the Dow.

Amazon.com (AMZN) and Intel were both rising within buy ranges. Micron Technologies (MU) led the Nasdaq 100. AMD topped the S&P 500. Dave & Buster's Entertainment (DAVE) soared after reporting fourth-quarter results late Tuesday. Boot Barn Holdings (BOOT) appeared set to retake a buy point, lodging a 5% surge in premarket trade.

Dow Jones, S&P 500 Near Fresh Highs

The Dow Jones Industrial Average ended Tuesday's session 2.9% below its October high, holding firmly above the 26,000 level. The S&P 500 is 2.5% below its peak from September, maintaining support above the 2,800 mark. The Nasdaq is 3.6% off its August high. All of the index's 2018 peaks occurred in concert with tariff- or sanction-related policy announcements.

For more detailed analysis of the current stock market and its confirmed uptrend, study the Big Picture.

Chip Stocks: Intel, Advanced Micro Get Buy Ratings

Chip stock Intel jumped 1.3% ahead of the open, after Nomura initiated coverage on the stock with a buy rating. The note placed a price target for the stock at 65, almost 20% above Tuesday's closing price.

Intel remains in a buy range, after topping a 54.20 buy point in a cup-with-handle base in mid-March. Shares remain in buy range through 56.91.

Advanced Micro Devices sparked 4.5% higher. Nomura also initiated coverage on the stock with a buy rating and a 33 price target. AMD stock ended Tuesday 5% below a potential buy point at 28.21, in a possible six-month cup-with-handle base. The base is 53% deep, which adds some risk to any potential breakout.

Stock Futures: Amazon, Netflix Advance

Amazon.com paced the FANG stock tech leaders in early action with a 0.8% gain. The IBD Leaderboard stock ended Tuesday at the very top of a buy range above a 1,736.51 buy point. The buy range runs through 1823.33.

Netflix climbed 0.7%, possibly receiving a boost from Tuesday's news that the Justice Department had warned the Academy of Motion Picture Arts and Sciences that barring content from streaming services such as Netflix could violate antitrust laws.

Netflix, an IBD Leaderboard watch list stock, ended Tuesday 1% below a 371.59 buy point in a cup-with-handle base.

Hiring Slows, Mortgage Action Surges

U.S. non-farm private sector employers added 129,000 workers in March, according to ADP's National Employment Report. That was down from 183,000 new hires in February, and well below forecasts for a decrease to 165,000 new jobs. Service sector employers added 135,000 new workers, while employment among goods producers decreased by 6,000. Education and health posted the largest increase: 56,000 new jobs.

Mortgage application activity spiked for a second straight week as mortgage rates posted their biggest one-week drop in a decade, according to the Mortgage Bankers Association. Mortgage application volume swelled 18.6% vs. the prior week and was up 28% over year-ago levels. Refinance applications soared 39% week-over-week, and 58% above year-ago activity.

Mortgage-related ETFs VanEck Vectors Mortgage REIT Income (MORT) and UBS ETRACS Monthly Pay 2xLeveraged Mortgage REIT (MORL) were unchanged in premarket trade.

Researcher Markit is scheduled to release its March services sector purchasing managers index at 9:45 a.m. ET. The Institute for Supply Management's non-manufacturing index is due out at 10 a.m. ET.

U.S.-China Trade War Final Push?

Chinese Vice Premier Liu He meets with Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Washington, D.C., today, as negotiations push to close what appear to be last-mile gaps in a restructured U.S.-China trade relationship.

Trade optimism sent China's markets higher, with both the Shanghai Composite and Hong Kong's Hang Seng Index taking better-than 1% gains. Japan followed suit, with Tokyo's Nikkei 225 jumping 1%.

China-facing ETFs traded generally higher on U.S. markets. The Direxion Daily CSI 300 China A Share Bull 2X (CHAU) and Direxion Daily FTSE China Bull 3X (YINN) each swept 3.1% higher in premarket trade. The iShares MSCI China (MCHI) was unchanged.

Prime Minister Shakes Up Brexit Talks

Prime Minister Theresa May abandoned her effort to muster support for her existing Brexit proposal, offering to compromise with opposition Labour leaders and to implement any deal that was agreed to by a majority of lawmakers. The shift in stance points to a much "softer" Brexit plan than had been favored by May's Conservative party, and points to a less severe change than many Brexiteers had hoped for in the U.K.'s relationship to the European Union.

May plans to request a short delay to the U.K.'s already extended deadline for exit from the trade bloc, currently set for April 12. Europe's markets were mixed on May's strategy, with London's FTSE 100 trading a fraction in the red near midday. Frankfurt's DAX sprung 1% higher and the CAC-40 in Paris gained 0.6%.

Boot Barn Set To Stomp Buy Point

Boot Barn saddled up to retake a buy point, and gained nearly 5% ahead of the open. The stock blew past a 29.88 flat base buy point in weak trade Monday. It reversed back below the entry during Tuesday's session. The buy range runs through 31.37. It's important to remember that not all premarket moves carry over into regular trade.

According to IBD Stock Checkup, the footwear chain has a very strong 96 IBD Composite Rating. The Composite Rating is a blend of key fundamental and technical metrics to help investors gauge the strengths of a company's stock.

Oil Prices Inch Up Ahead Of Data

Oil prices chalked up narrow gains ahead of Energy Information Administration weekly supplies data due out at 10:30 a.m. ET. West Texas Intermediate crept a fraction higher to $62.62 a barrel. Brent crude gained 0.4% to $69.64. WTI is at its highest level since the first week of November.

Oil-focused ETFs Citigroup Global Markets VelocityShares 3x Long (UWT) was down 0.1%, the United States Oil Fund (USO) added 0.2%, in early trade.

Follow Alan R. Elliott on Twitter @IBD_Aelliott

YOU ALSO MIGHT LIKE:

The Big Picture: These 6 Critical Factors Could Impact Stocks In Q2

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Best Dividend Stocks: 5 High-Yield Stocks Beating The S&P 500

IBD Stock Of The Day Hits New Buy Point After 81% Run

Extend Your Open Access To MarketSmith

Let's block ads! (Why?)

https://www.investors.com/market-trend/stock-market-today/stock-futures-climb-chip-stocks-lead-nasdaq-sp-500-dow-jones/

2019-04-03 13:05:56Z
52780259348633

Private payrolls add 129K in March vs. 173K est.: ADP/Moody's Analytics - CNBC

Job growth hit an 18-month low in March amid increasing signs that the hiring boom may be running out of steam, according to a report Wednesday from ADP and Moody's Analytics.

Private payrolls increased by just 129,000 for the month, well below the 173,000 that economists surveyed by Dow Jones had expected. The weakness was offset somewhat by an upward revision for February, which went to 197,000 from an initially reported 183,000.

Overall, though, March was the worst month since September 2017, which saw an increase of just 111,000.

"The job market is weakening, with employment gains slowing significantly across most industries and company sizes," Mark Zandi, chief economist at Moody's Analytics, said in a statement. "Businesses are hiring cautiously as the economy is struggling with fading fiscal stimulus, the trade uncertainty, and the lagged impact of Fed tightening. If employment growth weakens much further, unemployment will begin to rise."

All of the gains came from services, which increased 135,000, while goods-producing industries lost 6,000 positions. A decline of 6,000 in construction and 2,000 in manufacturing was offset a bit by a 2,000-job increase in natural resources and mining.

On the plus side, education and health services saw an increase of 56,000 while professional and business services added 41,000. Leisure and hospitality grew by 13,000 while information services increased by 11,000 and trade, transportation and utilities contributed 9,000. Financial activities saw a drop of 1,000.

The disappointing number comes as Wall Street is watching the jobs market closely for signs of an economic slowdown. The Labor Department's nonfarm payrolls count is released Friday, with economists looking for growth of 175,000 after February's weak 20,000 reading.

Zandi, who said he expects the government count to be closer to 140,000, attributed much of the jobs issues to weakening business sentiment fueled in part by the U.S.-China trade dispute.

"The widespread expectation is that the Trump administration and the Chinese will come to terms here and get a deal and this trade war will end. But until it does, the uncertainty created by the conflict is weighing heavily on the collective psyche," Zandi said in a conference call.

ADP and the government counts often conflict, as evidenced by the 177,000 disparity in the February total.

Small businesses, which have been a major growth engine for hiring, struggled in March with just 6,000 net new hires, according to the ADP/Moody's report. The biggest gains game from firms with between 50 and 499 employees, which grew by 63,000, while large companies added 60,000.

Let's block ads! (Why?)

https://www.cnbc.com/2019/04/03/payrolls-up-129000-in-march-way-below-wall-street-expectations.html

2019-04-03 12:15:02Z
CAIiEFERhyAFH2X2TisfYAmdhZ0qGQgEKhAIACoHCAow2Nb3CjDivdcCMJ_d7gU

World stocks rally to six-month highs on U.S.-China trade optimism - Investing.com

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Dhara Ranasinghe

LONDON (Reuters) - World stocks rallied to six-month highs on Wednesday as investors cheered signs of progress in U.S.-China trade talks and reassuring economic data, helping push Germany's 10-year bond yield back up to zero percent.

Oil neared the key $70 per barrel mark -- a multi-month high -- on supply concerns.

Sterling extended its gains after British Prime Minister Theresa May said late on Tuesday she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour Party leader, raising hopes of a "softer" Brexit.

Signs of progress in U.S.-China trade talks and decent factory activity data from China and the United States in recent days has lifted investor sentiment and taken the edge off world recession fears.

Europe's stock markets rose almost 0.8 percent to their highest since August, tracking strong overnight gains in Asia where MSCI's broadest index of Asia-Pacific shares outside Japan climbed to a seven-month peak.

Hopes for a deal to end the trade war between the world's two largest economies were fanned by fresh comments from White House economic adviser Larry Kudlow that Washington expects "to make more headway" in talks this week.

"We're being told that we're 90 percent of the way there which is obviously encouraging but the final 10 percent -- which apparently includes the enforcement mechanism and the removal of tariffs -- could take some time to iron out," said Craig Erlam, senior market analyst at Oanda in London.

"Investors are happy to be patient here in the hope that the two sides get this right and put an end to a trade war that has clearly taken its toll on markets."

Germany's stock market rose 1 percent to its highest level since October, while in Paris, French stocks scaled a similar high. The stronger tone to the pound, however weighed on London's index, which was a touch lower.

Generally strong world stocks and hopes of a softer Brexit sparked a sell-off in safe-haven government bonds, pushing yields off recent lows.

rose almost 4 basis points to 2.52 percent.

Germany's benchmark 10-year German Bund yield rose to 0.005 percent. A week ago it hit a 2-1/2 year low at around minus 0.09 percent on concern about the weak economic growth backdrop.

"What we're seeing is that markets have climbed a world of worry but there is progress on trade, a recession is unlikely, central banks have made nods to more dovish policy," said Chris Bailey, European Strategist at Raymond James. "If you put that into the mix I'm not surprised risk assets have moved up."

Oil prices stood near multi-month highs amid concerns about supply. rose to as high as $69.92 per barrel, its highest since November and near the psychologically important level of $70 per barrel.

It was last up 0.6 percent at $69.80. U.S. West Texas Intermediate (WTI) crude rose 0.34 percent to $62.79 per barrel.

News that the United States is considering more sanctions against Iran, the fourth-largest producer of the Organization of the Petroleum Exporting Countries (OPEC), and the halting of production at a crude terminal in Venezuela threatened to squeeze supply and pushed oil prices up on Tuesday.

BREXIT ROLLER COASTER

Sterling rose further as traders welcomed news that Britain's May would begin cross-party talks with the opposition Labour party as a signal that Britain will end up with a "softer" exit from the European Union.

The pound strengthened 0.4 percent higher at $1.3196, its highest since March 28. The British currency had slipped below $1.30 on Friday on growing fears of a no-deal Brexit.

The dollar strengthened 0.2 percent against the yen to 111.54 and the euro added 0.1 percent to buy $1.12170.

The , which tracks the greenback against a basket of six major rivals, eased 0.19 percent to 97.176.

Cryptocurrency bitcoin, which surged 18.7 percent on Tuesday following a major order by an anonymous buyer, extended its gains by another 1.6 percent to $4,977.48.

dipped 0.08 percent to trade at $1,291.31 per ounce.

Let's block ads! (Why?)

https://www.investing.com/news/stock-market-news/asian-shares-scale-new-sevenmonth-highs-tight-supply-lifts-oil-1825712

2019-04-03 08:42:00Z
CBMid2h0dHBzOi8vd3d3LmludmVzdGluZy5jb20vbmV3cy9zdG9jay1tYXJrZXQtbmV3cy9hc2lhbi1zaGFyZXMtc2NhbGUtbmV3LXNldmVubW9udGgtaGlnaHMtdGlnaHQtc3VwcGx5LWxpZnRzLW9pbC0xODI1NzEy0gEA