U.S. stocks fell overnight after some weaker than expected economic reports deflated recent optimism that the recession may be easing.
On Wednesday, the Dow Jones industrial average fell 39 points to 9,281. The S&P500 Index lost 3 to 1003 and the NASDAQ dropped 18 points to 1,993.
In economic news: Paycheck processor Automatic Data Processing reports that private-sector employers slashed 371,000 jobs in July, higher than expected.
And outplacement firm Challenger said that companies planned job cuts jumped 31 per cent in July.
On Friday the U.S. Labor Departments monthly jobs report is to be released, expectations are for a loss of 328,000 jobs in July, down from 467,000 in June.
The Institute for Supply Management's services index dropped to a read of 46.4 in July down from 47 in June. Economists' had forecast a rise to 48. The result remains below the 50 mark separating expansion from contraction.
And the Commerce Department reported that factory orders rose 0.4 per cent in June. Economists had expected a decline of 0.8 per cent.
In company news: Shares in branded consumer goods company The Procter & Gamble Company (NYSE:PG) fell 2.79 per cent to $53.91. The company posted earnings for the fourth quarter that exceeded expectations, however revenue fell as consumers shied away from the company’s higher end products. Procter & Gamble also warned that results for the first quarter may miss forecasts.
Shares in manufacturer of packaged foods Kraft Foods Inc (NYSE:KFT) lost 0.04 per cent to $28.33. Kraft reported its earnings results for the second quarter late on Tuesday, posting a 27 per cent increase in earnings per share from continuing operations to 56 cents a share. Kraft also increased its guidance for 2009 earnings per share to at least $1.93 up from previous guidance of $1.88.
Shares in insurance broker Marsh & McLennan Companies Inc (NYSE:MMC) rose 5.4 per cent to $22.66. The company reported a loss for the second quarter after writing down the goodwill value of a business unit.
And shares in insurer American International Group Inc (NYSE:AIG) soared 62.72 per cent to $22. The company’s shares soared after bringing on former head of MetLife, Bob Benmosche, as the its new CEO. AIG is to report its earnings for the quarter before the market opens on Friday.
Checking the NASDAQ Top 100: the best performer was Garmin, shares adding 23.84 per cent to $33.66. While Foster Wheeler and Akamai Technologies also climbed higher. The worst performing stock was Electronic Arts shares falling 6.81 per cent to $20.40, followed by Amgen and Adobe Systems.
