Tag Archives: ADP

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ADP: Private Sector Added 200,000 Jobs in July

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By Reuters

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AP

By Leah Schnurr

NEW YORK — U.S. private employers added 200,000 jobs in July, topping economist expectations in an encouraging sign for the labor market recovery, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 180,000 jobs. June’s private payrolls were revised up to an increase of 198,000 from the previously reported 188,000.

The report is jointly developed with Moody’s Analytics.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Zombie Economy Overshadows Fed Meeting

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By CNBC

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APFederal Reserve Chairman Ben Bernanke

By Patti Domm

GDP data Wednesday is expected to show a slow-moving, zombie-like economy, as the Fed meets for a second day.

Many economists expect second quarter growth to be paltry, less than one percent, and some think that data could help shape the Fed’s thinking if it’s even weaker than expected. The first quarter grew at a 1.8 percent rate.

The Fed meanwhile, isn’t expected to say much new when its meeting ends. The 2 p.m. Eastern time statement isn’t seen altering what Fed Chairman Ben Bernanke has already said about the Fed’s plans to taper bond purchases before the end of the year. But it may adjust its comments to reflect a temporary slowing of the economy. The Fed, and many economists, expect a stronger growth rate in the second half of the year.

“[Wednesday] is an action-packed today. It’s one of those weird ones where it’s so action-packed, what if it is a dud?” said George Goncalves, Treasury strategist at Nomura Americas. “We have all these high expectations — GDP, revisions to GDP, ADP, the Treasury going to announce at 8:30 their intentions for borrowing. We have the Fed later on.”

It is also the end of the month, and that could make markets more volatile as traders square positions. For July, the S&P 500 is up five percent, bringing its year to date gain to 18.2 percent, The Dow was up four percent in July so far. Markets Tuesday were in a wait-and-see mode ahead of the Fed’s announcement Wednesday. The Dow Jones industrial average (^DJI) edged 1 point lower to 15,520 and the S&P 500 (^GSPC) rose less than a point to 1,685.

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The 10-year Treasury note was at 2.61 percent Wednesday. Traders are watching that yield level, as a move higher could take the market to a potential nervous zone for stocks.

“We’ve had a little bit of a backup in yields. [Month end] could amplify whatever’s happening toward the end of the day,” Goncalves said.

“I think GDP will be constructive. I think it’s still coming in on the weak side. The Fed will react to it by not being too hawkish. Then we’re going to quickly turn our attention to [nonfarm payrolls] on Friday,” he said. The Fed has said it would base its tapering decisions on economic data , and it is particularly focused on employment so some traders expect to get more new information from the jobs data than the Fed statement.

The 8:30 a.m. Eastern time GDP release is also be important because the government will release revisions in the data going back to 1929. It last issued massive revisions in 2009. “It’s clear the level of GDP is going to be higher by …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

ADP® Renews Agreement with Visa amid Rising Adoption of U.S. Prepaid Cards

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By Business Wirevia The Motley Fool

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ADP ® Renews Agreement with Visa amid Rising Adoption of U.S. Prepaid Cards

Four Million Checks Lost Annually Cost Businesses $8 to $10 per Replaced Check 1

FOSTER CITY, Calif.–(BUSINESS WIRE)– Visa Inc. (NYS: V) and ADP today announced an agreement to offer employers the ALINE Pay by ADP® electronic payroll program. The ALINE Pay program includes the award-winning ALINE Card by ADP®, a Visa prepaid card that can be integrated into an organization’s current payroll system as a standalone product or as part of the ALINE Pay solution. The agreement is a multi-year extension of their existing relationship that helps make employer payroll more efficient.

“Increasingly, employees are benefitting from the prepaid suite of products for receiving payroll with immediate and secure access to their funds, especially underbanked and unbanked employees who have limited or no access to traditional banking relationships,” said Brian Triplett, head of North America prepaid products, Visa Inc. “By working together, Visa and ADP continue to help businesses address the needs of an evolving workforce, while saving time and money with a paperless solution.”

“As a leader in payroll distribution and processing, ADP helps organizations streamline payroll administration by enabling them to make the switch to 100 percent electronic payroll,” said Gary Lott, ADP general manager and division vice president, ADP Electronic Payments, Unemployment Claims, Employment Verification and Wage Garnishment Services. “Through the ALINE Card and our agreement with Visa, we’re empowering today’s workforce to save money and time through online bill pay, mobile access, account balance alerts via text or email and the ability to make purchases in stores, online and over the phone.”

The electronic payroll solution ALINE Pay by ADP®, which includes the ALINE Card by ADP®, provides employers of all sizes a convenient way to achieve 100 percent electronic pay. ALINE Pay is one component of ADP SmartComplianceSM, a cloud-based unified platform of outsourced services that helps medium and large businesses better manage payroll, tax and employment compliance.

Tweet This: @Visa & @ADP renew agreement for convenient #paycard option to employees with ALINE Card by ADP® http://bit.ly/11JXW05#ADPcompliance

About Visa:

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

ADP: A Smart Dividend Stock

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By Dan Caplinger, The Motley Fool

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Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Automatic Data Processing , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

ADP is a huge player in the payroll-processing and HR-services industry, with clients including some of the biggest corporations in the world. But with employment having been sluggish at best in recent years, how has ADP coped? Let’s take a closer look at ADP to see whether it can sustain its long streak of rewarding dividend payouts to investors.

Dividend Stats on ADP

 

  

Current Quarterly Dividend Per Share

$0.435

Current Yield

2.7%

Number of Consecutive Years With Dividend Increases

38 years

Payout Ratio

56%

Last Increase

December 2012

Source: Yahoo! Finance. Last increase refers to ex-dividend date.

The latest news from ADP
A big part of ADP‘s success comes simply from its being in an industry where the costs of switching to rival providers typically outweigh any prospective benefits. For the most part, ADP and rival Paychex have carved up the industry into two parts, with ADP having had success with many of the largest employers while Paychex tends to target the smaller and mid-sized employer market.

But recently, ADP and Paychex have seen a potential new competitor in the mix. Intuit has gotten its foot in the small-business door with its popular Quickbooks and TurboTax software, and the company sees plenty of opportunity in getting business customers who use its accounting and tax products to move their entire HR suite to Intuit. That arguably affects the smaller-focused Paychex more than ADP, but Intuit has a history of going after larger game once it consolidates its progress in a particular industry.

Source: ADP Dividend data by YCharts.

As you can see, ADP‘s dividend growth slowed slightly during the 2008 recession, as many companies that focused on serving business customers fell prey to the recession’s impact. But since then, ADP has started to boost its dividend more sharply again, with its most recent increase amounting to more than a 10% gain.

When will dividends rise again?
Since ADP‘s most recent dividend increase was back in December, investors will likely have to wait six months or longer for another jump in the payouts they receive. But with strong leadership at ADP’s helm and some signs of the economy growing again, …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Slow Job Growth Puts Brakes on the Dow

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By Matt Thalman, The Motley Fool

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Market participants have been hit with poor jobs data three days in a row this week, and each seemed to be worse than the one before. On Wednesday, ADP released their report, which indicated that the private sector added only 158,000 jobs. Thursday, the Labor Department published weekly jobless claims that rose to 385,000 initial claims last week. And today, the Bureau of Labor Statistics announced that only 88,000 new jobs were created in the month of March.

The three reports combined paint a really bad picture of the jobs marke,t and caused the market, in general, to decline today. The Dow Jones Industrial Average lost 40 points, or 0.28%, while the S&P 500 performed slightly worse, losing 0.43%. The NASDAQ, unfortunately, took third place, after it lost 0.65% of its value.

Technology stocks really took it on the chin today, and to read about a few of the big losers, click here. Or to learn about some of the other Dow losers, continue reading below.

Shares of American Express fell 2.14% today on the heels of the poor jobs data. When the country is in a state of high unemployment and a poor jobs market, consumers tend to spend less money or, at the very least, borrow less money. That means credit cards are often put in the back of the wallet, and cash is used more frequently. With lower transaction counts, and less borrowed money to charge interest on, the credit card company may likely post lower revenue, resulting in lower profits.

The Home Depot was also hit hard by the jobs report today. Shares lost 0.89% of their value after the report indicated that retail trade employment declined by 24,000 in the month of March, and 10,000 of that came directly from building material and garden supply stores. Although Home Depot announced that it was planning to hire 80,000 seasonal workers this year, the cold weather throughout the country during the month of March has surely pushed the hiring dates back.  

Another big loser today was Coca-Cola , as shares fell 1.13%. The soft drink king is up 10.57% since the start of 2013, but lagging behind the Dow’s 11.15% gain year to date. Shares recently set a new 52-week high, and are still within striking distance of that mark, even after today’s decline. Shares remain reasonably priced at 20 times past earnings, or 17 times expected earnings, and some consider the company’s 2.8% dividend yield just as safe as treasury yields.

Coca-Cola’s wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you’ll want to click here now and get started!

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Bank of America Is Down So Big This Week

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By John Grgurich, The Motley Fool

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The big banks took a pounding this week, and Bank of America was no exception: down 2.30% on the week. With no breaking bad news for B of A, what’s to explain the superbank’s severe downturn?

The tale of the tickers
Before we dig into that, here’s a quick overview of how B of A’s peers and the markets performed this week:

  • Citigroup was down a massive 3.94%.
  • JPMorgan Chase was down a much less massive, but significant, 0.82%.
  • Wells Fargo held up the best by far of the big four, down just 0.62%.

The markets were all in the red, as well; with the Dow Jones Industrial Average down 0.51%, the S&P 500 down 1.37%, and the Nasdaq the worst performer by far, down 2.36%.

Foolish bottom line
A 2.30% share-price drop is nothing to sneeze at. Usually, it takes some big piece of bad news to move a single stock by that much. But again, there just wasn’t much cracking on the B of A home front this week.

Foolish colleague John Maxfield reported on poor B of A performance on the customer service front, per information released by the Consumer Financial Protection Bureau, but it’s unlikely investors would care too much about that.

But there was something unusual that happened in the markets on Wednesday. B of A, Citi, and JPMorgan all dropped off a cliff. Citi lost more than 3% that day alone, while JPMorgan and B of A both lost more than 2%. Wells Fargo held up the best on Black Banking Wednesday, losing only 0.22% off its share price. Warren Buffet‘s favorite bank also recovered very strongly on Thursday — again unlike its peers — only to start today down again.

There’s no apparent reason for this banking sector hammering, either. Wednesday did see a ADP, the payroll-processing giant, report less than expected private-sector job growth, but if you’re looking for a singular reason for Black Banking Wednesday, that’s a stretch. (And if markets didn’t like the ADP report, wait till they get a hold of today’s truly terrible jobs numbers.)

The bottom line is, sometimes the markets move down — and up — for no apparent reason. But as Foolish investors — buy-and-hold types who are in it for the long haul — remember not pay too much attention to the day-to-day, week-to-week, or even month-to-month gyrations of the markets. Markets are made up of people, and people can be fickle.

So long as the companies you hold stock in have sound fundamentals, you believe in the corporate mission, and you understand how they make money, have faith that your investing dollars are in the right place. Get rich slowly, Fools. 

Looking for unequalled in-depth analysis on Bank of America?
Look no farther than this Motley Fool premium report — expertly researched and written by top Foolish banking analysts Anand Chokkavelu and Matt Koppenheffer. They’ll help you lift the veil on the bank’s operations, and give …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Citigroup Got Crushed This Week

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By John Grgurich, The Motley Fool

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As I write this, about midway through the final day of the trading week, Citigroup is down a whopping 4.34% for the week. The big banks got hammered overall, but no one else took it on the chin quite like Citi.

Tale of the tickers
Before we autopsy Citi’s dreadful performance, let’s have a quick look at how the superbank’s peers and the markets did:

  • Bank of America is down 2.29%.
  • JPMorgan Chase is down 0.48%.
  • Wells Fargo is our winner of the week, down just 0.65%.

The markets have had a tough time of it as well, with the narrower Dow Jones Industrial Average down 0.40%, the broader S&P 500 down 1.32%, and the Nasdaq down 2.31%.

Foolish bottom line
Right off the bat, there’s not a whole heck of a lot happening on the news front for Citi — but it’s always a good thing to check when a stock drops off a cliff the way Citi’s did this week.

On Monday, Reuters reported that a federal judge said he would not “rubberstamp” the superbank’s proposed settlement of a shareholder lawsuit alleging that Citi “hid tens of billions of dollars of toxic mortgage assets.” If the settlement is overturned, it presumably means the suit could end up costing the bank more than the $590 million it was prepared to pay out, but this story isn’t big enough to have caused the 4.4% drop all on its own.

What else, then? It was certainly a weird week for the four big banks overall. Everything was running relatively smoothly until Wednesday, when share prices for B of A, JPMorgan, Wells Fargo, and Citi took a nose dive. Again, there was nothing happening broadly that accounts for this pitch downwards.

With today’s disappointing jobs numbers from the Department of Labor, however, expect the down markets and down banking sector to stay down. Everyone’s looking for signs of economic recovery, and investors will not like hearing that the U.S. economy created only 88,000 new jobs for the month of March.

But before you let that admittedly pitiful number get you down, remember that this number is typically revised. And while that could be a revision upward or downwards, chances are it will be upward, as the ADP jobs report cited the creation of 158,000 private-sector jobs in March. 

Also remember that the markets move up and down with great caprice sometimes, and following your favorite stocks on a day-to-day basis can not only be misleading, it can be downright depressing.

Take the long view, Fools. Check in with your companies on a quarterly basis: Make sure their fundamentals remain sound, and that you still understand how they’re making money, then go read a book, take your dog for a walk, or play with your kids.

Foolish investors know they’re in it far into the future, and can therefore find peace among the inevitable gyrations of the markets.

Looking for in-depth analysis on Citi?
If so, look no further …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Third Time's the Charm: Jobs Data Hurts the Dow

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By Matt Thalman, The Motley Fool

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For the third day in a row, the markets have been hit with poor jobs data.

On Wednesday, payroll-processing company ADP reported that private employers only added 158,000 new jobs in the month of March, whereas economists were expecting 200,000 hires. Yesterday, the Department of Labor’s weekly jobless-claims report indicated that 385,000 initial claims had been filed the previous week, which was 28,000 more than the week before and 35,000 higher than what was expected. And today, the Department of Labor once again poured on the bad news with its March employment report. The Bureau of Labor Statistics reported that just 88,000 new jobs were created last month. Analysts were expecting a much higher number, which most had pinned around 200,000. 

Although the Dow Jones Industrial Average managed to post a strong gain yesterday despite the high jobless claims, as of 12:55 p.m. EDT today it’s down 111 points, or 0.76%. The other major indexes are actually performing worse: The S&P 500 has lost 0.95% of its value, and the NASDAQ is down 1.17%.

Some of the largest drags on the markets today come from the world of technology.

Shares of Cisco have fallen 2.5% after competitor F5 Networks released an earnings warning. Shareholders need to remember that poor performance by the competition can sometimes be good news. However, concerns that established companies are struggling to keep up with ever-changing technology have investors pulling out of the networking giant today. 

After falling 1.3% yesterday, shares of IBM are down a further 1.4% today. While Cisco is getting punished for a competitor’s weakness today, investors may be punishing IBM for its competition’s strength. A recently published independent study indicates that IBM‘s competitor Oracle now has chips and servers that outperform IBM‘s similar devices. 

The Dow’s darling stock of 2013, Hewlett-Packard , is down by 1.9% after chairman Ray Lane announced yesterday that he will step down from his position but still hold a seat on the board of directors. Only 59% of shareholders voted to re-elect Lane at the company’s recent shareholder meeting, so Lane’s move is something of a mixed bag. It likely makes 41% of shareholders happy that he’s no longer the chairman yet unhappy that he’s still on the board. On the other hand, 59% of shareholders voted to keep Lane, so they may be upset today that he gave in to the minority and decided to step down.

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP is rapidly shifting its strategy under the leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool’s technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Gains on Japan Stimulus

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By Jeremy Bowman, The Motley Fool

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Stocks edged higher today, as the market received a boost from a Japanese stimulus package, though investors received another jobs-related scare as initial unemployment claims soared. Trading was choppy, but the Dow Jones Industrial Average finished up 56 points, or 0.4%.

Earlier, the Bank of Japan announced a whopping stimulus plan to inject $1.4 trillion into its struggling economy over the next two years. The move would nearly double Japan‘s monetary base as officials search for an end to two decades of low or no growth. The Nikkei index jumped 2.2%, while the yen fell more than 3% against the dollar, after the unprecedented decision.

Following yesterday’s foreboding employment report from ADP, initial jobless claims for last week came in much higher than expected, hitting a four-month high. The new jobless rolls climbed to 385,000, up from 357,000 the week before, and way ahead of estimates of just 340,000. Previously, the  four-week moving average of new jobless claims had a hit a five-year low. Continuing employment claims, however, still remain relatively calm.

On the Dow today, Hewlett-Packard was the best performer, up 1.8%, as Chairman Ray Lane announced he would be stepping down, though he would remain on as a director. Lane was nearly ousted by shareholders earlier when he received less than 60% of their vote along with two other directors at HP‘s annual meeting last month, as investors seemed to blame him for the Autonomy debacle. Director Ralph Whitworth will take over as the Interim Chair. Two other HP directors also said they were resigning.

AT&T was another winner today, as Facebook and HTC rolled out a $99 phone that comes pre-loaded with a Facebook home page. AT&T will be the exclusive carrier of the new phone, HTC First. Home is essentially a new Android platform for Facebook, as the new technology will allow users to see Facebook photos and messages on the phone’s home page. Facebook shares were up 3.1% on the news.

Also making news with a similar partnership of its own was Best Buy , whose shares were up 16% after the retailer said it struck a deal to install 1,400 Samsung kiosks in its stores. Investors seem to think the move could give Best Buy an edge over online competition, which it will need to stem falling sales. Still, Samsung’s Galaxy lineup may now be the most appealing of all Smartphones, and the Korean electronics-maker is certainly a strong brand for Best Buy to hitch its fortunes to.

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP‘s rapidly shifting its strategy under the new leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor blip on its road to irrelevance? The Motley Fool’s technology analyst …read more

Source: FULL ARTICLE at DailyFinance

News, Politics, Government

US unemployment aid applications jump to 385,000

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The number of Americans seeking unemployment aid rose to a four-month high last week, although the increase partly reflects seasonal distortions around the spring holidays.

Weekly applications increased 28,000 to a seasonally adjusted 385,000, the Labor Department said Thursday. It was the third straight weekly increase and the highest level since late November. The four-week average, a less volatile measure, rose to 354,250.

A Labor Department spokesman says it can be difficult to seasonally adjust the figures during the Easter holiday because the timing of the holiday varies from year to year. Economists warned before the report that the data could be volatile.

Applications are a proxy for layoffs. The recent increases could suggest that companies are cutting jobs, possibly because of steep government spending cuts that began on March 1. Other reports have pointed to that possible trend, although most economists have said that any reductions are likely temporary.

The government will issue the March employment report Friday.

Job growth has picked up in recent months. Employers added an average of 200,000 jobs per month from November through February. That’s nearly double the average from last spring.

Stronger economic growth this year has spurred more hiring. A steady housing recovery has boosted home construction and prices. Higher home prices make Americans feel wealthier, which can spur more spending.

In February, consumer spending rose by the most in five months. And consumer confidence improved in March from the previous month, according to a survey released last week by the University of Michigan.

Two reports Wednesday, however, suggested companies may have grown more cautious last month. Services companies grew in March but at a slower pace than in February, according to the Institute for Supply Management, a trade group. Service firms, which include retailers, hotels, restaurants and financial companies, cut back on hiring and a measure of new orders fell.

And private employers added fewer jobs in March compared with February, according to payroll processor ADP. Construction firms didn’t add any positions after three months of strong gains.

Several economists lowered their forecasts for hiring in March after Wednesday’s reports. Still, many analysts cautioned that the ADP is not always an accurate predictor of the government‘s more comprehensive figures

…read more

Source: FULL ARTICLE at Fox US News

Business, Finance, Occupation & Industry

Dow May Gain After Japanese Central Bank Doubles QE

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By Roland Head, The Motley Fool

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LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open 0.36% higher this morning, while the S&P 500 may open up by 0.4%. Both indexes closed sharply lower yesterday after weaker-than-expected economic data dented investor sentiment and led to a big drop for the CNN Fear & Greed Index, which closed down 13 points at 58.

This morning’s trading is likely to be influenced by the Japanese central bank’s surprise decision to accelerate its bond-buying program and double its monetary base in the next two years. The Bank of Japan said it would expand its balance sheet from $1.43 trillion to $2.86 trillion by March 2015 by doubling its asset purchases, the majority of which will be long-term government bonds. The bank is targeting inflation of 2% to kick-start growth after years of deflation.

In Europe, markets rose ahead of the European Central Bank announcement due later today, although the ECB is expected to leave interest rates unchanged. The eurozone service sector continued to contract in March, according to the Markit eurozone services PMI, which fell to 46.4 in March from 47.9 in February, indicating that the rate of contraction is increasing. In London, the FTSE 100 was 0.17% lower at the time of writing following the Bank of England‘s announcement that it would leave both interest rates and its asset purchase program unchanged this month.

In the U.S., today’s initial jobless claims report at 8:30 a.m. EDT is likely to be closely watched after yesterday’s ADP employment figures came in below expectations. A Reuters survey suggests that 350,000 new jobless claims were made last week, down slightly from 357,000 the previous week. Today’s figures are likely to be seen as a leading indicator ahead of tomorrow’s nonfarm payrolls and unemployment reports. Meanwhile, this morning’s Challenger job-cut report said that layoffs planned by U.S. companies spiked 37% from January to February. However, the cuts were more than offset by planned hiring.

Other economic data due today includes the EIA weekly natural-gas storage report at 10:30 a.m. EDT and the global services PMI at 11 a.m. EDT.

Companies expected to report quarterly earnings before markets open include International Speedway, Jos. A Bank Clothiers, and RPM International. Facebook stock could also be actively traded ahead of today’s much-hyped media launch of a new Android-related product — widely expected to be a Facebook phone. Facebook stock climbed 3.3% yesterday and was 1.2% higher in premarket trading this morning.

Finally, let’s not forget that the Dow’s daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced of the long-term power of the Dow, you should read “5 Stocks To Retire On.” Your long-term wealth could be transformed, even in this uncertain …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Economic Data Drags Down Dow

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By Jeremy Bowman, The Motley Fool

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Stocks slid today as weak economic data caused investors to doubt the strength of the recovery. The Dow Jones Industrial Average started off with slight gains, but fell steadily over the course of the trading session to finish down 112 points, or 0.8%.

Payroll processer ADP disappointed the market with its March jobs data, reporting that 158,000 jobs were added last month, below the 197,000 that the market expected and the smallest the company has reported since October. ADP‘s employment figures often differ significantly from the official one from the Labor Department‘s, which will be released on Friday. Economists expect that report to show 210,000 private sector jobs were added last month.

The ISM Services Index also came in slightly below estimates, hitting a rating of 54.4 against expectations of 55.5.

Oil prices also dropped by 3% late in the day as U.S. supplies hit their highest level since July 1990.

Not surprisingly, the banks were the worst performers on the Dow as Bank of America fell 2.8% and JPMorgan Chase dropped 2.4%. The slowdown in hiring and therefore the economic recovery would put an unexpected hurdle in front of the two big banks, which are dependent on consumers in a recovering housing market. The housing sector received its own warning signal in a report that said that mortgage applications dropped 4% last week.

Merck was one of just three blue chips to buck today’s downward trend, finishing the day up 1%. The drugmaker today filed a patent-infringement lawsuit in India against Glenmark pharmaceuticals regarding an anti-diabetes drug. With more than 1 billion people in India, the drug market there looms large, especially as the population steadily moves into the middle class. Earlier this week, Swiss drugmaker Novartis lost a major ruling in India that would have given it patent protection over a cancer drug known as Gilvec.

Boeing also made some small gains today, rising 0.3%, as it reported a new order from British Airways and said it was halfway done with testing of the Dreamliner. In a vote of confidence for the troubled jet, the British airline will order 18 more Dreamliners, on top of an original order of 24, and said the Spanish airline Iberia, a division of the same company, may put in its own order. Testing to get the Dreamliner back in the skies is moving slower than expected but should be done within a month or so.

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This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

<br …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Financials Hit the Dow Hard

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By Matt Thalman, The Motley Fool

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After yesterday’s mixed Institute for Supply Management data and today’s jobs report from payroll processor ADP, the markets fell across the board. Of the major indexes, the Nasdaq lost the most, falling 1.11%, while the S&P 500 came in second after shedding 1.05% of its value, and the Dow Jones Industrial Average took the third spot after losing 0.76%, or 111 points.

To learn about what the ISM report said and how it affect stocks, click here. Today’s jobs report, meanwhile, showed that only 158,000 jobs were created in March, when economists were looking for 200,000. One bright spot from the ADP report was that revised numbers for February indicated that payroll figures for the month actually increased by 237,000, not the 198,000 previously reported.  

Other Dow losers
American Express seems to have played follow-the-leader today. Shares dropped 1.76%, as its fellow Dow financial components led the way lower. Bank of America led all Dow stocks after losing 2.8%, and JPMorgan Chase lost 2.36%. While both American Express and JPMorgan both went ex-dividend today, but AmEx’s $0.20-per-share reduction or JPMorgan’s $0.30-per-share cut don’t make up for their massive loses today.  

The big reason the banks all fell was a report indicating that mortgage loan applications had fallen by 4% last week. In addition, the jobs report indicated that there has been a slowdown in the hiring of construction workers. When we look at both of these data points together, it begins to paint a somewhat concerning picture of the housing market, which happens to be one area that all the major banks have been focusing on to help increase revenues and profits.

Shares of both the Dow big oil stocks fell today. Chevron dropped 1.03%, which was slightly lower than ExxonMobil‘s decline of 0.72%. It’s likely that today’s poor jobs report, yesterday’s disappointing ISM data, and a 2.82% drop in the price of crude today all played a role. The price per barrel of crude fell today after the Energy Information Administration released crude inventory levels this morning, showing a rise of 2.7 million barrels last week. Total commercial inventories are now at 388.62 million barrels, the most since 1990.  

In addition to those reasons, though, Chevron’s shares may have also fallen today after shareholders saw the company’s SEC filing detailing executive compensation. CEO J.S. Watson was one of many members of Chevron top brass who got big bonuses in 2012; Watson’s total salary before bonuses or stock options for 2013 stands at $1.8 million.

If you’re on the lookout for some currently intriguing energy plays, check out The Motley Fool’s “3 Stocks for $100 Oil.” For free access to this special report, simply click here now.

The article Financials Hit the Dow Hard originally appeared on Fool.com.

Fool contributor Matt Thalman owns shares of Bank of America and JPMorgan Chase. The Motley Fool …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Bank Stocks Drag Down the Dow

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By Travis Hoium, The Motley Fool

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It took a few hours to sink in, but investors sold off stocks after some weak economic data was reported this morning. ADP payroll data for March showed a 158,000 increase in jobs, which fell far short of both February’s 237,000 and the estimate of 200,000. So far we’re overlooking the fact that ADP revised February numbers higher by 39,000 and projecting the possibility of a weak jobs report on Friday.

The other data point worrying investors is ISM‘s nonmanufacturing index, which fell to 54.4 in March, below the 55.8 estimate. This still signals expansion but shows more weakness in the economy than it did a month ago and adds to weak manufacturing readings over the past few weeks. With about half an hour left in the trading day, the Dow Jones Industrial Average has fallen 0.68%, and the S&P 500 is down 1%.

Bank of America and JPMorgan Chase have done the most damage to the Dow, falling 3% and 2.6%, respectively. One of the concerning numbers in ADP‘s report was a slowdown in construction hiring, which has driven a lot of the economic recovery. Both megabanks are tied closely to housing, and increased construction signals a healthy housing market, so a slowdown is troublesome. Keep in mind that this is just one data point, and many economists weren’t expecting the economy to really pick up steam until the second half of the year, when the impact of tax increases and the sequester are no longer on the minds of consumers and businesses.

Merck is one of just four Dow components moving higher today, up 1.1%. There are likely two factors driving Merck higher today. First is the increase in Medicare Advantage reimbursements announced yesterday, which should keep Merck from feeling a bigger pinch from insurers. The second factor is that Merck is in a business that sees few swings in demand based on the economy. Investors are fleeing to stocks that won’t be hurt if the economy slows over the next few quarters, and Merck is a beneficiary of that flow of money today.

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance

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Why the Dow (and banks) Are Getting Pounded Today

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By John Maxfield, The Motley Fool

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Here’s my favorite headline of the day: “Retail Investors Are Back! But Don’t Hit ‘Sell’ Yet,” courtesy of our friends over at CNBC. The point of the article is simple. It’s long been assumed by professional traders that the time to start selling out of a market is when mom-and-pop investors start getting in. If you haven’t already done so, I suggest you consider the implications of that.

With this in mind, it should be no surprise that the Dow Jones Industrial Average is tanking today. According to data cited in the article, mutual funds and exchange-traded funds recorded net inflows of $4.5 billion over the last week, adding to an already considerable influx since the beginning of the year. “It’s driven today by people who feel that they’ve been missing out, but we’re still in the early innings of retail investors coming back,” an analyst told CNBC.

Of course, the other explanation is that today’s triple-digit sell-off was triggered instead by a handful of disappointing economic releases. In the first case, payroll-processing company ADP reported that private-sector employment increased by only 158,000 jobs last month. Economists surveyed by Bloomberg called for a gain of 200,000. And in the second case, the Mortgage Bankers Association said this morning that mortgage applications dropped last week by 4% despite the fact that mortgages rates declined as well.

While there’s probably some truth to both, the performance of the Dow’s banking stocks today certainly adds credibility to the latter. With about an hour left in trading, JPMorgan Chase and Bank of America are the index’s worst-performing components, down 2.5% and 3%, respectively. Given the importance of mortgages and the associated fees to these businesses, this should be no surprise. In the fourth quarter of last year, JPMorgan originated $51.2 billion in mortgages, while B of A notched $22.5 billion — though both were dramatically outdone by Wells Fargo.

Alternatively, the best-performing stock on the Dow this afternoon is Merck , up 1.6%. As my colleague Dan Dzombak observed earlier, the pharmaceutical company’s performance today comes on the heels of the government‘s surprise decision to expand, rather than contract, the amount of support it’s offering to Medicare Advantage customers. According to Dan, “While [the changes] don’t benefit Merck directly as they would health care plan providers, higher reimbursements should mean that drug revenue will not fall as previously expected.”

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

…read more
Source: FULL ARTICLE at DailyFinance

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Why the Dow Has Plunged More Than 100 Points

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By Dan Carroll, The Motley Fool

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Forget about yesterday’s great gains. The markets are embracing the red today, and as of 2:30 p.m. EDT the Dow Jones Industrial Average has plunged 102 points, or 0.7%, easily giving up everything it gained yesterday. Most stocks on the blue-chip index are in the red, with several recording significant losses. Today’s drop doesn’t owe to recent events so much as it owes to what investors are feeling. Let’s catch up on why the market’s so far in the red.

Investors catch a case of the jitters
The bad news started early as payroll-processing company ADP reported that private-sector hiring dried up last month. The addition of 158,000 jobs added last month was far short of expectations for nearly 200,000 and fell significantly from February’s hiring pace. The decline in private-sector hiring isn’t likely responsible for all of today’s market drop, however. With the record highs the markets have been hitting, cautious investors wary of a pullback are much more likely to react negatively to news such as this — and thus create opportunities for investors looking for a dip in their favorite stocks.

That caution is evidenced by today’s 9%-plus jump in the market’s CBOE Volatility Index , or VIX — the measure of fear in the markets. So long as the markets remain at these highs despite the economy’s sluggish growth, expect more volatile days like this from both the Vix and the major indexes.

On the stock front, a few picks are making the most of a bad day. Boeing shares are up 0.7% to rank among the few winners on the Dow. Japanese carrier All Nippon Airways is reportedly sending its pilots back into flight simulator training for Boeing’s grounded 787 Dreamliner aircraft after Boeing finished more than half of the necessary tests on its new battery fix. The resumption of training is a vote of confidence that the company will have the 787 ready to fly again in the near future — something investors have been patiently waiting for.

Unfortunately, most stocks aren’t gaining ground today. Big banks are leading the charge into the red: Bank of America has lost 3.5%, and JPMorgan is down 2.8%. Bank stocks have done well over the course of the recovery, but today’s investor pullback is hitting the financial sector harder than the rest today.

Although there’s no news important enough to justify today’s drop, it’s natural to expect jittery investors to retreat from this sector on negative economic news. Still, over the long term, the recovery should benefit stocks like B of A and JP Morgan: While dips are expected, these two stocks have rewarded investors handsomely recently.

Is B of A a buy?
Bank of America’s stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it’s critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool’s premium research report …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

March Employment Underwhelms

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By Justin Loiseau, The Motley Fool

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Nonfarm private employment increased by a seasonally adjusted 158,000 jobs for March, according to ADP‘s National Employment Report  (link opens in PDF) released today.

Human capital management company ADP partners with Moody’s Analytics to produce this monthly report based on ADP payroll data representing 416,000 U.S. clients employing nearly 24 million workers in the U.S..

Source: Author, data from ADP. 

Although this month continues a three-year streak of improvements, month-to-month gains haven’t been this low since October 2012. After February’s revised 237,000 additional jobs, market analysts had expected a 205,000-job jump for March.

Moody’s Analytics Chief Economist Mark Zandi said in a statement today: “Job growth moderated in March. Construction employment gains paused as the rebuilding surge in the wake of Superstorm Sandy ended. Anticipation of Health Care Reform may also be weighing on employment at companies with close to 50 employees. The job market continues to improve, but in fits and starts.”

Goods-producing employment was the main culprit for March’s mediocre results, adding just 7,000 jobs for the slowest growth rate in six months. Services managed a 151,000 increase in employment, boosted primarily by a 39,000 gain for professional/business services.

link

The article March Employment Underwhelms originally appeared on Fool.com.

Y
ou can follow Justin Loiseau on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.
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3 Dow Stocks Winning Today

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By Dan Dzombak, The Motley Fool

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The Dow Jones Industrial Average is down following a troubling private sector jobs report, having lost 67 points, or 0.46%, as of 1:15 p.m. EDT. Meanwhile, the S&P 500 is down 0.77% to 1,558 points.

There were two U.S. economic releases today.

Report

Period

Result

Previous

ADP private-sector jobs

March

158,000

237,000

ISM nonmanufacturing PMI

March

54.4

56

Source: MarketWatch U.S. Economic Calendar.

The one to pay attention is the ADP private-sector jobs report, as a weak Institute for Supply Management nonmanufacturing PMI had been expected.

Analysts had expected jobs growth of 215,000 in March, up slightly from February’s previously reported 198,000. In today’s report, however, February’s total was updated to 237,000 additional jobs. So when March’s jobs growth came in dramatically lower than that, the markets dropped.

ADP Change in Nonfarm Payrolls data by YCharts.

Small businesses added 74,000 jobs, while large businesses added just 47,000. Employment has been a positive so far this year, as both unemployment claims and jobs growth have been trending above last year’s levels. However, last week’s worse-than-expected unemployment report and today’s private-sector jobs report are worrisome. The government reports its jobs numbers later this week, which will include both public and private-sector jobs. We’ll have to wait and see what happens.

Today’s Dow leaders
Today’s Dow leader is Merck , up 2.4%. Merck was a top Dow stock yesterday after the government surprised investors by announcing that Medicare Advantage reimbursements will rise. While they don’t benefit Merck directly as they would health care plan providers, higher reimbursements should mean that drug revenue will not fall as previously expected.

This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company’s moving parts, its major market opportunities, and reasons both to buy and to sell. To find out more, click here to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Dan Dzombak”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Poor Jobs Data Hurts Investors' Confidence

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By Matt Thalman, The Motley Fool

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This morning payroll processor ADP reported an upward revision to its February payroll figures from 198,000 to 237,000. However, ADP also reported that private employers added only 158,000 jobs in March, which was well below the 200,000 most economists were expecting. The report has made market participants ever more anxious for Friday’s jobs report from the Department of Labor and triggered investors to take profits this afternoon.

As of 12:45 p.m. EDT the Dow Jones Industrial Average has lost 76 points, or 0.52%, while the S&P 500 and NASDAQ are performing worse, losing 0.8% each. But not all of the Dow’s losers today are a result of the ADP report.

The biggest Dow loser’s today are unfortunately the banks. Shares of Bank of America and JPMorgan Chase are both heading lower. B of A is down 3.3%, while JPMorgan has lost 2.2%. The Mortgage Bankers Association reported that weak refinancing last week caused a 4% decline in home loan applications. While the financial crisis was essentially a result of a massive amount of bad mortgage debt that ultimately led to the collapse of a number of financial institutions large and small, for better or worse mortgage loans have once again become a large part of the industry’s business. While this may be only a temporary slowdown in loan applications, investors should keep an eye on this data.

Shares of Verizon are down by 1.2% after the company denied that it would be partnering with AT&T to acquire Vodafone. Reports said Verizon and AT&T would purchase Vodafone for $245 billion and then split the company. Verizon would take Vodafone’s 45% stake in Verizon Wireless, and AT&T would receive Vodafone’s operations outside the U.S. While Verizon has denied these claims, the company said it would still consider buying Vodafone’s stake in the Verizon Wireless venture. As of this writing, shares of AT&T are down 0.6%.

While few may remember, today is an important date in Verizon’s history: Back in 2000 the company was officially born. To read the full story and learn how Vodafone played a role, click here.

More foolish insight
With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal or if finance stocks are a screaming buy today. The answer depends on the company, so to help you figure out whether JPMorgan is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!

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Source: FULL ARTICLE at DailyFinance