Stocks started the fourth-quarter on a down note today after disappointing eurozone and U.S. manufacturing data.
The closely-watched ISM manufacturing index fell to 56.6 in September from 59.0 in August. Economists had expected a much more modest decline to 58.2.
The private sector added 213,000 jobs last month according to ADP. This was above both last month’s 204,000 gain and expectations for a 209,000 job increase. The report comes ahead of Friday’s payroll and unemployment rate report.
Manufacturing sector data from Markit pointed to a further slowing in the eurozone as its purchasing manager index dropped to 50.3 from 50.7 last month. Both and Germany and France had readings that were consistent with a contraction in manufacturing activity.
At market close the S&P 500, Dow and Nasdaq were down 1.3%, 1.4% and 1.6% respectively.
Stocks on the Move
Shares of ADP (ADP) fell over 14% after the firm the spun-off its dealer services segment, which provides management systems and digital marketing services to automotive dealerships. That business has been renamed CDK Global. The firm will receive an $825 million dividend in connection with the deal, and will use that cash for stock repurchases.