11:15 AM New York – Stock on Wall Street lacked direction as foreign ministers of U.S. and Russia meet in Paris. The latest private sector jobs and service sector growth data may have been impacted more than estimated by harsh weather. The IMF urged the ECB to provide more financial liquidity.
Stocks on Wall Street trading see-sawed after market indexes scaled new highs at yesterday’s close.
S&P 500 index increased 1.45 to 1,875.44 and the Nasdaq Composite Index gained 5.07 to 4,357.17.
Weak Private Sector Jobs Increase
U.S. private sector added fewer than expected workers in February and service sector growth slowed raising the speculation that harsh winter weather in the North and drought conditions in the West are impacting more than expected.
The ADP National Employment Report, a private survey showed an increase of 139,000 net new jobs in the private sector in February.
The January data was revised sharply down to 127,000 from the previous estimate of 175,000.
The government report is scheduled to be released on March 7. Economists are estimated the government report to show an increase of 145,000 jobs across all sectors in the economy.
Employers added 113,000 in January and 75,000 in December.
Service Sector Growth Contracts
The index of service sector showed a slower growth in February, according to data released by financial data firm Markit.
The purchasing managers’ index declined to 53.3 in February from 56.7 in January. Any reading above 50 indicates expansion.
The revised data was better than the preliminary data of 52.7 released last week.
The service sector continues to expand and grow the payrolls but the growth in the jobs slowest in last 11 months.
European markets turned negative after the International Monetary Fund urged the European Central Bank to cut interest rates and either increase the purchase of government or private sector bonds or provide more liquidity in the financial system.
FTSE 100 index decreased 0.5% to 6,792.03, DAX 30 index fell 14.4 to 9.575.92 but CAC 40 index gained 0.1% to 4,400.01.
U.S. Stocks in Review
Exxon Mobil Corp
) declined 2.6% to $94.04 on the worries that its operation in Russia may face retaliatory sanctions if the U.S. slaps Russia with travel and visa bans and control assets of Russian businesses.
PepsiCo, Inc (PEP
) increased 0.8% to $80.91 after falling by the same in yesterday’s trading on the worries of its operations in Russia.