|
U.S. service companies kept growing at a solid pace in March, but the expansion was less than economists were expecting. The Institute for Supply Management's index of service companies fell to 54.4 from 56 a month earlier. The report was the weakest in seven months. Separately, payrolls processor ADP reported that U.S. employers added 158,000 jobs last month, down from February's gain of 237,000. The ADP report is often seen as a preview for the government's broader survey on employment, which is due out Friday. The slowdown in hiring was due in part to construction firms holding back on adding new employees. That sent the stocks of homebuilders lower. PulteGroup fell 85 cent, or 4.3 percent, to $19.01 and D.R. Horton dropped 57 cents to $22.84. In other trading, the Nasdaq composite fell 36.26 points, or 1.1 percent, to 3,218.60. Even though stocks started the second quarter lower, markets typically add to their gains after ending the first quarter up, said Sam Stovall, an equity strategist at S&P Capital IQ. Using data going back over more than 60 years, Stovall says that the S&P 500 has gained an average of 9 percent from April to December after rising in the first quarter. "Investors believe that the economic trajectory is improving," said Stovall. Stocks "do not reflect the true valuations based on where the economy will be at the end of the year." Among stocks making big moves: Zynga rose 46 cents, or 15 percent, to $3.53 after the online game maker said two casino games would debut in the United Kingdom Wednesday. Abercrombie & Fitch rose $1.74, or 3.8 percent, to $47.20, making it the biggest percentage gainer in the S&P 500. The company said late Tuesday that it planned to expand internationally and place greater emphasis on cost control.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor