Mid-Day Recap: Stocks Sell After Weak PMI Read. Reverse Course Following Oil Rally
The stock market turned ugly this morning after an index from the windy city reported that business conditions were back in the red. An earlier report indicating that the labor market was worse than forecasts in September had laid the groundwork for the sell-off.
Within a few minutes all three indexes fell more than 1%, and by 11:30 the S&P 500 was down 0.77% to 1,052, the Dow was trading 0.77% lower to 9,671, while the Nasdaq was down 0.66% to 2,109.
However, shortly thereafter commodities prices began to rally and stocks bounced off a key technical support level, recovering almost all of the intraday losses.
As of 1:45 pm, the S&P 500 is down 0.12% to 1,059, the Dow is trading 0.02% lower to 9,740, and the Nasdaq is up 0.22% to 2,128.
Trading before the opening bell had been mixed. A rally in global equities has helped sentiment early on, but gains were pared after the release of the ADP private employment report.
ADP said 254,000 jobs were lost in September, including 103,000 in the services sector and 151,000 in the manufacturing sector. Forecasters were looking for a total decline of only 195k jobs, so the market shrunk from earlier gains as traders took a more cautious tone ahead of Friday’s officials numbers.
“The ADP employment data for September are consistent with the message of jobless claims that net job losses â€
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