Please ensure Javascript is enabled for purposes of website accessibility

Poor Jobs Data Hurts Investors' Confidence

By Matt Thalman - Apr 3, 2013 at 1:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A lower-than-expected ADP report, following yesterday's lower-than-expected factory orders, has investors selling today.

This morning payroll processor ADP reported an upward revision to its February payroll figures from 198,000 to 237,000. However, ADP also reported that private employers added only 158,000 jobs in March, which was well below the 200,000 most economists were expecting. The report has made market participants ever more anxious for Friday's jobs report from the Department of Labor and triggered investors to take profits this afternoon.

As of 12:45 p.m. EDT the Dow Jones Industrial Average (^DJI -0.75%) has lost 76 points, or 0.52%, while the S&P 500 and NASDAQ are performing worse, losing 0.8% each. But not all of the Dow's losers today are a result of the ADP report.

The biggest Dow loser's today are unfortunately the banks. Shares of Bank of America (BAC -1.23%) and JPMorgan Chase (JPM -1.48%) are both heading lower. B of A is down 3.3%, while JPMorgan has lost 2.2%. The Mortgage Bankers Association reported that weak refinancing last week caused a 4% decline in home loan applications. While the financial crisis was essentially a result of a massive amount of bad mortgage debt that ultimately led to the collapse of a number of financial institutions large and small, for better or worse mortgage loans have once again become a large part of the industry's business. While this may be only a temporary slowdown in loan applications, investors should keep an eye on this data.

Shares of Verizon (VZ 0.43%) are down by 1.2% after the company denied that it would be partnering with AT&T (T -0.10%) to acquire Vodafone. Reports said Verizon and AT&T would purchase Vodafone for $245 billion and then split the company. Verizon would take Vodafone's 45% stake in Verizon Wireless, and AT&T would receive Vodafone's operations outside the U.S. While Verizon has denied these claims, the company said it would still consider buying Vodafone's stake in the Verizon Wireless venture. As of this writing, shares of AT&T are down 0.6%.

While few may remember, today is an important date in Verizon's history: Back in 2000 the company was officially born. To read the full story and learn how Vodafone played a role, click here.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$31,253.13 (-0.75%) $-236.94
Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$34.45 (-1.23%) $0.43
AT&T Inc. Stock Quote
AT&T Inc.
T
$20.21 (-0.10%) $0.02
JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
JPM
$118.31 (-1.48%) $-1.78
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
VZ
$49.10 (0.43%) $0.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.