US Stocks end mostly lower as a dismal ADP jobs report

The US equity market finished choppy session mostly lower on Wednesday, 06 May 2020, snapping two days of winning streak, as investors elected to book recent profit after fresh US labour data showed another spike in joblessness in April 2020. Sentiment was further dimmed as oil prices fell again amid doubts on how fast demand will recover. At closing bell, the Dow Jones Industrial Average fell 218.45 points, or 0.9%, to 23,664.64. The S&P 500 - a gauge of US retirement and education savings accounts - shed 20.02 points, or 0.7%, to 2,848.42. The tech-heavy Nasdaq Composite Index rose 45.27 points, or 0.5%, to 8,854.39.

The major averages finished the session on opposite sides of the unchanged line, as traders weighed optimism about some states reopening against some dismal employment data. The ADP jobs report showed that US companies lost 20.2 million jobs in April. The government's April jobs report is due Friday.

 

Energy stocks showed a significant move to the downside on the day, moving lower along with the price of crude oil. Crude for June delivery slumped $0.57 to $23.99 a barrel.

Shares off Disney dipped 0.2% as it said it will see an impact of some US$1.4 billion from the coronavirus in the current fiscal quarter as a result of a massive hit to its theme parks and other operations.

Shares of General Motors jumped 3% after reporting better-than-expected profits and announcing plans to resume US manufacturing this month, even as net income plunged 86% to US$294 million.

Activation Blizzard surged 6.3% as it reported higher profits following heavy use of its games during coronavirus lockdowns, including "Call of Duty: Warzone."

ECONOMIC NEWS: US Private Sector Employment Nosedives in April-- US private sector employment nosedived in the month of April 2020, according to a report released by payroll processor ADP on Wednesday. The report said private sector employment plunged by 20.236 million jobs in April after slumping by a revised 149,000 jobs in May. ADP noted the report utilizes data through the 12th of the month, the same as the Labor Department's monthly jobs survey, and does not reflect the full impact of COVID-19 on the overall employment situation.

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