RTTNews - Stocks are seeing modest weakness in early trading on Wednesday, with the major averages adding to the steep losses posted in the previous session. Traders are reacting to disappointing employment data, although selling pressure has remained relatively subdued.
Housing stocks are turning in some of the market's worst performances, pulling back further off their recent highs. Significant weakness has also emerged among networking, airline, and defense stocks, while health insurance and gold stocks are bucking the downtrend.
Before the start of trading, Automatic Data Processing, Inc. (ADP) released a report showing a bigger than expected drop in private sector jobs in August, although the report still showed a slowdown in the pace of job losses.
ADP said that non-farm private employment fell by 298,000 jobs in August following a revised decrease of 360,000 jobs in July. Economists had expected a decrease of about 246,000 jobs compared to the loss of 371,000 jobs originally reported for the previous month.
While employment fell by more than economists had been anticipating, the loss of jobs in August still marked the smallest drop in employment since September of 2008.
Separately, the Labor Department released its revised report on labor productivity in the second quarter, showing that productivity increased by more than previously estimated amid a smaller than expected drop in output.
In corporate new, video game make Take Two (TTWO) reported a third quarter loss versus a year-ago profit, although its adjusted loss for the quarter came in narrower than expected. Looking forward, the company forecast fourth quarter earnings in line with estimates.
The major averages are currently posting modest losses, just off their lows for the young session. The Dow is currently down 27.74 at 9,282.86, the Nasdaq is down 6.39 at 1,962.50 and the S&P 500 is down 3.51 at 994.53.
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