Weak labor market data weighed on the US stock markets

After a friendly day on Wall Street with new records, Wednesday showed itself with donations. Weak labor market data weighed on the US stock markets. According to the ADP report, around half as many jobs were created in the private sector as expected in July. A better than expected purchasing managers index for the service area in China did not provide support, because the concerns about the corona situation there are too great. The new infections in China have reached the highest levels of the year. New drastic measures threaten. Declining vaccination rates in many Western countries also caused some concern. The Dow Jones index closed 0.9 percent easier at 34.793 points, the S&P 500 fell 0.5 percent. The Nasdaq composite, however, gained 0.1 percent. There were a total of 1068 (Tuesday: 1916) course winners and 2235 (1383) losers. 133 (128) titles closed unchanged. Although the economic recovery remains on track, the pace is likely to be slower than hoped, it said. The peak of short-term growth is considered to have passed. "We are entering a phase where growth is still strong, but not as strong as it was in the early boom," said Invesco's fund manager Sebastian Mackay. The earnings development of companies is also likely to enter a new phase of the cycle and the momentum to subside. The dynamics on the stock market could also suffer as a result in the medium term. In view of the ADP labor market report, it may be questioned whether the economic upswing will continue. The US automaker General Motors (GM) exceeded expectations in the second quarter and raised the forecast for 2021. However, analysts had hoped for an even more optimistic outlook. GM slipped by 8.5 percent, the titles have performed above average this year. Kraft Heinz lost 5.1 percent - despite business figures above market expectations. The food company warned of continued cost inflation. The drugstore chain CVS Health posted higher sales thanks to the corona pandemic. However, the company had to raise minimum wages to recruit staff. The titles fell by 2.8 percent. Amgen fell 6.5 percent after the biotech company cut its annual earnings forecast. Amgen's earnings fell in the second quarter, but sales exceeded expectations. Lyft tumbled 10.6 percent after the ride operator and Uber competitor reported its first quarterly profit on an adjusted basis - a quarter earlier than expected. However, concerns about new Corona-related travel restrictions are weighing on - Uber lost 2.3 percent. The US dollar rebounded after initially falling with weak labor market data, with the dollar index rising 0.2 percent. With the economic and corona worries, the safe havens of gold and bonds were sought. The same worries weighed on the oil market, where demand fears put oil prices under pressure. Even new reports of possible attacks on oil tankers in the Persian Gulf did not support oil prices.