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Hiring worries weigh on stocks

Wednesday, May 02, 2012 - 01:57

May 2 - U.S. stocks closed mixed after new data revealed disappointing jobs data ahead of the government's monthly employment report. Bobbi Rebell reports.

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PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL Stocks came back from earlier losses on Wednesday to close mixed. The most active stock on the New York Stock Exchange: Chesapeake Energy. Shares plummeted nearly 15 percent, weighing down the energy sector. The nation's number two gas producer is under a cloud after investigations by Reuters into the CEO's personal financial dealings. New data from payrolls company ADP showed private sector hiring has slowed down. It was a disappointing report according to Yelena Shulyatyeva, US Economist, BNP Paribas: SOUNDBITE: YELENA SHULYATYEVA, U.S. ECONOMIST, BNP PARIBAS (ENGLISH) SAYING: "We think that winter month hiring was slightly overestimating the underlying pace of labor market improvement and that is because we had such a record warm winter so the companies really didn't need to fire that many workers and likewise they don't really need to hire that many in spring so we now see a somewhat slower pace of employment growth". Today's payroll numbers are sparking concerns about possible weakness in the monthly jobs report from the government which is due out Friday. Today, the government reported the biggest decline in new factory orders in three years in March- though they were slightly better than forecasts. And Target is going to stop selling Amazon's Kindle tablets. The move comes as the retailer is outfitting some of its stores with special displays of Apple products including the iPad, a Kindle Fire competitor. Taking a look at the closing numbers, US stocks rebounded from their worst levels of the day to close mixed. Stocks in Europe also closed mixed after new data showed Euro zone factories sank further into decline, raising concerns about the region's economic crisis. Bobbi Rebell, Reuters.

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Hiring worries weigh on stocks

Wednesday, May 02, 2012 - 01:57