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BUSINESSThursday 9 March 2017
Stock indexes end mostly lower as the price of oil plunges
MARLEY JAY
AP Markets Writer
NEW YORK (AP) — U.S.
stocks fell for the third day
in a row as energy com-
panies tumbled along with
the price of crude oil. Inves- and there wasn’t much of
tors also sold high-dividend
stocks as bond yields rose,
giving investors other alter-
natives for seeking income.
Crude oil prices fell 5 per-
cent, their biggest drop in
more than a year, after the
government reported a big
buildup in fuel stockpiles.
A survey by a payroll com-
pany showed that private
companies added the
most jobs in three years in
February, a sign of stron-
ger economic growth. That
helped send bond prices
lower and yields higher.
The report showed big in-
creases in construction and
manufacturing hiring.
According to industry mea-
surements and govern-
ment data, manufacturing
and business investment
have improved in the last
few months after a steep
slump. However investors
have longed for evidence
manufacturing and con-
struction companies were
Survey: Private employers added robust 298K jobs last month
C. S. RUGABER
AP Economics Writer
WASHINGTON (AP) —
U.S. businesses added the
most jobs in three years last
month, a private survey
Traders work on the floor of the New York Stock Exchange. .S. stocks fell for the third day in a row
as energy companies tumbled along with the price of crude oil.
bringing on more workers,
that until Wednesday.
“It’s not surprising that you The Dow Jones industrial
would start to see the hir-
ing improve in that sector,”
said Katie Nixon, chief in-
vestment officer for North-
ern Trust. “It’s been a drag
on economic growth the
last couple of years.”
found, a sign that hiring
may be accelerating from
last year’s modest levels.
Payroll processor ADP said
Wednesday that business-
es added 298,000 jobs in
The Standard & Poor’s 500
index dipped 5.41 points,
or 0.2 percent, to 2,362.98.
average lost 69.03 points,
or 0.3 percent, to 20,855.73. ary.
The Nasdaq composite
rose 3.62 points, or 0.1 per- yield on the 10-year Trea-
cent, to 5,836.55 as health
care and technology com-
panies moved higher.
February, up from 261,000
the previous month. The
gains were led by a huge
66,000 increase in construc-
tion, the most in 11 years,
and 32,000 manufacturing
jobs, the most in five years. diverges from official fig-
The hiring boom in con-
struction was likely driven
by unseasonably warm
weather in much of the
country. Construction
sites typically shut down in
snow or freezing weather.
Still, job gains were broad-
based and suggest that in-
creased business optimism
may have led to more hir-
ing. January and Febru-
ary’s job gains are above
last year’s average of
about 185,000 per month.
“February proved to be an
incredibly strong month for
employment with increases
we have not seen in years,”
said Ahu Yildirmaz, vice
president and co-head of
the ADP Research Institute.
Measures of business confi-
dence have jumped since
the presidential election
makers will meet next
week, and investors expect
the central bank to raise in-
(AP Photo/Richard Drew) terest rates for the first time
since December. Nixon
Private businesses added says long-term bond yields
298,000 jobs last month, ac- could reach roughly 3 per-
cording to payroll proces- cent in a few months.
sor ADP. That came after a Stocks that pay big divi-
slightly smaller gain in Janu- dends such as utilities and
real estate investment
Bond prices dropped. The trusts are often compared
to bonds because of their
sury note jumped to 2.56 hefty payments to share-
percent from 2.52 percent. holders.
Federal Reserve policy- High-dividend companies
also fall out of favor when
Wall Street expects faster
economic growth. Util-
ity holding company PG&E
gave up $1.10, or 1.7 per-
cent, to $65.16 and Realty
Income dropped $2.14, or
3.6 percent, to $57.70.
The Energy Information Ad-
ministration said oil reserves
grew by 8 million barrels last
week, far more than ana-
lysts expected. Benchmark
U.S. crude sagged $2.86,
or 5.4 percent, to $50.28 a
barrel in New York, its lowest
price since late November.
Brent crude, used to price
international oils, fell $2.81,
or 5 percent, to $53.11 a
barrel in London.q
and the stock market has now expects job gains of
reached record highs in 250,000, up from 200,000.
anticipation of President Other signs point toward a
Donald Trump’s promised healthy job market, Wiese-
tax cuts and deregula- man noted in an email. The
tion. Investors are also op- number of people seeking
timistic with more evidence unemployment benefits, a
emerging of economic proxy for layoffs, has fallen
growth overseas, including to a 44-year low. And sur-
Europe. veys of manufacturing and
The ADP covers only pri- services firms in the past
vate businesses and often two months show greater
interest in hiring.
ures. Economists forecast The government’s Friday
that the government’s jobs report will be the final ma-
report, due Friday, will show jor economic data that
an increase of 186,000, ac- Federal Reserve officials will
cording to data provider see before their March 14-
FactSet. 15 meeting, when they are
In recent months, after a widely expected to raise
change in ADP’s methodol- short-term interest rates for
ogy, its figures have gotten only the third time in nearly
closer to the government’s a decade.
reported data. It was off A rate hike will be even
just 9,000 in January and more likely if the govern-
8,000 the previous month. ment’s data reflects strong
Some economists are revis- hiring similar to the ADP re-
ing higher their forecasts for port. Many economists say
Friday’s jobs report in the job gains would have to
wake of the ADP figures. plummet to roughly 50,000
Ted Wieseman, an econo- or less to give the Fed
mist at Morgan Stanley, pause.q