The Dow Jones Industrial Average (^DJI 0.20%) is down following sell-offs around the world and some worse-than-expected U.S. economic reports. As of 1:25 p.m. EDT the Dow is down 161 points, or 1.06%, to 15,017. The S&P 500 (^GSPC 0.94%) is down 1.03% to 1,615.
There were four U.S. economic releases today.
|
Report |
Period |
Result |
Previous |
|---|---|---|---|
|
ADP private-sector employment |
May |
135,000 |
113,000 |
|
Productivity |
Q1 |
0.5% |
0.7% |
|
ISM services |
May |
53.7% |
53.1% |
|
Factory orders |
April |
1% |
(4.7%) |
Besides the productivity report, the rest of today's economic releases came in below economist expectations, pulling Dow stocks down. The key report here is ADP's private-sector employment report. Analysts had expected the payroll provider to report that the private sector had created 170,000 jobs in May. The actual gain was far smaller at just 135,000 new private-sector jobs.
ADP Change in Nonfarm Payrolls data by YCharts.
The government reports its official jobs report on Friday which analysts expect will show a gain of 175,000 jobs, slightly higher than April's 165,000 new jobs. As 70% of the U.S. economy is based on consumer spending jobs are an important barometer to watch for the health or weakness of the economy.
The only Dow stock up today
Today's Dow leader is Cisco (CSCO -0.23%), up 0.7% to $24.52. Cisco is gaining alongside competitor Juniper Networks (JNPR -0.67%) after Juniper's CEO said he sees a trend of rising spending in the sector. Cisco was the third-biggest Dow gainer last week and the second-biggest Dow gainer in May. The stock has been on a tear since beating earnings estimates last month, rising nearly 16% since it reported on May 16. Since then Cisco has announced a small bolt-on acquisition.
Cisco has followed in the footsteps of Intel by becoming a dividend powerhouse, having first initiated a dividend in 2011. The company has raised the dividend more than 200%. On Monday Cisco announced that it would pay its quarterly dividend of $0.17 on July 24 to shareholders on record as of July 3 for a current forward yield of 2.8%.
