US stocks open lower on disappointing economic data

By FXStreet Major US equity indices opened lower on Wednesday as a slew of disappointing economic data continue to weigh on investor sentiment.

In early trade, the S&P 500 was down 13 point to 2,050, the Dow Jones Industrial Average slumped 130 point to 17,620 and tech heavy Nasdaq Composite index began the session with a cut of 0.6%, or 30 point, at 4,732. Wednesday’s fall has now taken all the major indices to their lowest level in three weeks.

Mixed US economic data

A flurry of economic data, including private-sector employment report and US businesses productivity, pointed to a sluggish growth of the economy. The ADP employment report, which provides an early estimate for the official jobs report, showed US private sector employment increased by 156,000 jobs in April. The report was well short of consensus estimates of 205,000 jobs. Meanwhile, the US labor efficiency fell by a 1% annual rate in the first quarter of 2016, marking a fourth quarter of decline in the past six quarters.

The bright spots were the US trade deficit and ISM non-manufacturing PMI numbers. US trade deficit shrank in March to $40.4 Billion, its lowest level since Feb. 2015. Meanwhile, the ISM non-manufacturing PMI rose …read more

Source:: FX Street