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Second-day slump for markets

Wednesday, April 04, 2012 - 01:50

April 4 - Summary of business headlines: Dow down for second day in a row; ADP report shows job growth; data shows slowing pace of growth in services sector; Mortgage applications rise; Yahoo to cut 2,000 jobs. Bobbi Rebell reports.

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An upbeat report on jobs was not enough to lift stocks in Wednesday's session. The major indexes were under pressure for the second day in a row as a private jobs survey adds to belief further monetary stimulus is unlikely. The report from payroll processor ADP showed the private sector added 209,000 jobs- slightly above forecasts. Separate data measuring employment in the services sector also rose last month- though the pace of overall growth slowed. Also some hope for the housing market- The Mortgage Bankers Association said mortgage applications picked up last week. Automakers showed off their latest models- as well as some high tech concept cars at the New York Auto Show. Jesse Toprak of TrueCar.com: SOUNDBITE: JESSE TOPRAK, VICE PRESIDENT, MARKET INTELLIGENCE, TRUECAR.COM. "Last couple of years have been tough for the industry, for the market. Remember coming to these shows three years ago, it was like walking into a funeral parlor. It was not about the cars. It was about trying to figure out whether this company will be in business in a few months. Now we are over that. We are over the hump. We are about the cars again. We are about the excitement and passion of the cars." As was widely expected, Yahoo announced plans to cut 2,000 jobs, or 14 percent of its workforce. Yahoo says the move will result in savings of $375 million annually. Taking a look at the closing U.S. numbers- it was red across the board- with the first triple-digit loss for the Dow in about a month. In Europe, Spanish borrowing costs jumped at bond auctions- sparking more worry about a recurrence of a euro-zone debt crisis. The major European indexes all closed lower in Wednesday's session. Bobbi Rebell, Reuters.

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Second-day slump for markets

Wednesday, April 04, 2012 - 01:50