US stocks fall on poor jobs, industrial data

New York - US stocks fell Wednesday following weak private-sector job growth numbers and a sharp drop in a key index on the manufacturing industry.

After a four-session winning streak, at 1415 GMT the Dow Jones Industrial Average was down 100.89 points (0.80%) to 12 468.90.

The broader S&P 500 index slid 10.10 points (0.75%) to 1 335.10, while the tech-heavy Nasdaq Composite shed 12.11 points (0.43%) to 2 823.19.

Shares lost much of Tuesday's one-percent-plus gains in the key indices after disappointing data on new private sector hiring and industrial production.

Payrolls firm ADP reported the nonfarm private sector added 38 000 jobs in May, well below the consensus estimate of 170 000. The April figure was revised upward to 177 000.

"This report should create a cautious tone ahead of the government's employment report on Friday, which is expected to show a 185 000 increase in nonfarm payrolls," said Patrick O'Hare at Briefing.com.

Meanwhile the Institute of Supply Management manufacturing survey showed a slowdown in business in May.

The ISM index dropped nearly seven percentage points from April, to 53.5%. New orders alone dropped by almost a fifth.

"Slower growth in new orders and production are the primary contributors to this month's lower... reading," the institute said.

Both figures provided further evidence that the economy sputtered over the first five months of the year, against expectations that growth would surge in the second quarter after a slow 1.8% pace in the first quarter.

Financials fell sharply: JPMorgan Chase lost 2.2%; Bank of America lost 2.0%; and American Express 1.8%.

Among industrials, United Technologies lost 1.4%, and General Electric lost 1.3%.

Bond prices rose. The yield on the 10-year Treasury bond fell to 2.99% from 3.05% late Tuesday, while that on the 30-year bond dropped to 4.17% from 4.22%. Bond prices and yields move in opposite directions.