U.S. stocks followed overseas markets lower early Wednesday amid downbeat economic data.
The S&P 500, Nasdaq and Dow Jones industrial average were each down 0.3%. Volume was tracking lighter vs. the same time Tuesday in the stock market today.
Overseas stock markets were lower. In Asia, the Nikkei slumped 3.1%, the Hang Seng fell 0.7%, and the Shanghai composite edged down less than 0.1%. In Europe, London’s FTSE was down 1.1%, while France’s CAC 40 slid 0.8%and Germany’s DAX 0.7%.
The service sector PMI report came in better than expected. The April reading of 55.7 was higher than 54.5 in March.
In other economic news, nonfarm productivity dipped 1% in Q1 from Q4, vs. views for a 1.2% decline. Labor costs rose 4.1%, above estimates for a 3.5% increase. ADP’s jobs report showed private sector employers added 156,000 jobs in April, down from 200,000 in March, for the smallest gain since April 2013.
U.S. employers laid off 156,000 workers in April, according to Challenger, Gray & Christmas. The March job cut estimate was revised down to 194,000 from 200,000. Economists’ forecast was for 193,000.
Priceline (PCLN) sank 10% in massive trade as it gapped down below its 200-day moving average. The stock has been trying to break out from a cup-with-handle base with a 1,361.73 buy point. Ahead of the open, the online travel site reported quarterly results that topped views, but its Q2 earnings outlook disappointed.
Under Armour (UA) tumbled 6%, triggering the 8% sell rule as shares slumped below a 45.53 buy point. Brean Capital downgraded the stock to hold from buy. The athletic apparel and shoe maker on Tuesday said its chief merchandising officer and chief digital officer will leave in July.