RTTNews - Stocks are moving modestly lower in early trading on Wednesday, with the major averages pulling back off their multi-month closing highs. Nonetheless, selling pressure has remained relatively subdued, limiting the downside for the markets.
The initial weakness comes as traders digest payroll processor Automatic Data Processing's (ADP) latest report on private sector employment in the month of July, which showed a slightly bigger than expected drop in jobs.
ADP said that non-farm private employment fell by 371,000 jobs in July following a revised decrease of 463,000 jobs in June. Economists had been expecting a decrease of about 350,000 jobs compared to the loss of 473,000 jobs originally reported for the previous month.
The bigger than expected decrease in jobs may raise some concerns about the Labor Department's monthly employment report to be released on Friday. The Labor Department report, which includes government jobs, is expected to show a decrease of 328,000 jobs.
Later in the morning, trading could be impacted by the release of the Commerce Department's report on factory orders in the month of June as well as the Institute for Supply Management's report on service sector activity in the month of July.
Health insurance stocks are turning in some of the market's worst performances, moving further off their recent highs. While some oil service, railroad, and trucking stocks are also posting notable losses, banking and airline stocks are seeing early strength.
In the past few minutes, the major averages have bounced well off their lows for the young session, climbing back near the unchanged line. The Dow is currently down 18.96 at 9,301.23, the Nasdaq is down 0.93 at 2,010.38 and the S&P 500 is down 0.34 at 1,005.31.
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