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Market Update

Stocks on Wall Street Trend Lower on Private Sector Jobs Data


Author: Nichole Harper
ticker.com
Last Update: 12:43 PM ET February 05 2014

12:40 PM New York Ė U.S. stocks trended lower after a private survey indicated private sector added less than expected jobs in Jan. Also a service sector index showed growth picked up in January.

Stocks on Wall Street extended decline after a series of recent economic data in China, U.S. and in Europe.

U.S. private sector added less than expected 175,000 jobs in January, according to a survey released by ADP Research Institute.

Though preliminary and narrow, survey data added to market caution after a series of recent weak economic data and the Fedís tapering program cut investor appetite to increase exposure to stocks.

The Labor Department is scheduled to release its payroll data across the entire economy on Friday.

The Institute of Supply Managementís service sector index increased to 54 in January from 53 in December. Any reading above 50 indicates an expansion.

S&P 500 index declined 0.2% to 1,751.28 and the Nasdaq Composite Index dropped 0.5% or 20.14 to 4,011.38.

European Markets

In London trading, FTSE 100 index increased 0.1% or 8.65 to 6,458.12 and in Frankfurt the DAX index fell 0.1% or 11.3 to 9,116.04.

In Paris, CAC 40 index gained 0.3 to 4,118.50.

U.S. Stocks in Review

Automatic Data Processing, Inc. (ADP) dropped 2.4% or $1.78 to $73.17 after the outsourcing sources provider stated total revenues in the second-quarter ending in December advanced 9% to $2.98 billion.

Net earnings in the quarter slid 3% to $377 million or 78 cents a diluted share compared to $390 million or 80 cents.

Estee Lauder Companies Inc (EL) plunged 6.2% or $4.34 to $64.85 after the makeup and beauty products maker reported net sales in the second-quarter ending in December grew 3% to $3.02 billion.

Net earnings in the quarter fell 3.3% to $432.5 million or $1.09 a diluted share compared to $447.5 million or $1.13.

The company estimated net sales for the third-quarter to grow in the range of 10% to 11% and diluted earnings per share between 52 cents and 55 cents.

Merck & Co., Inc (MRK) jumped 2% or $1.08 to $54.59 after the health care company reported sales in the fourth-quarter ending in December slipped 3.4% to $11.3 billion.

Net income in the quarter plunged 14% to $781 million or 26 cents a diluted share compared to $908 million or 30 cents.

Time Warner Inc (TWX) dropped 2% or $1.27 to $61.13 after the media and entertainment company reported revenue in the fourth-quarter ending in December jumped 5% to $8.6 billion.

Net income in the quarter declined 11.4% to $983 million $1.06 a diluted share compared to $1.11 billion or $1.15.

Ralph Lauren Corporation (RL) declined 4.6% or $7.11 to $147.07 after the retailer said total revenues in the third-quarter ending in December jumped 9% to $1.97 billion. Comparable store sales in the quarter rose 1%.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc