U.S. Market
Stocks started the second quarter off on a down note this morning.
The U.S. private sector added 189,000 jobs in March according to an ADP report released this morning. That is below the 214,000 jobs added in February and also below expectations of 225,000 jobs added. The data comes ahead of Friday’s closely-watched payroll and unemployment rate report.
The ISM manufacturing purchasing managers index fell to 51.5 in March from 52.9 in February. Economists had expected a more modest decline to 52.5. Any reading over 50 indicates an expansion, but this report is the fifth straight monthly decline and implies a further slowdown in manufacturing.
At midday the Dow and S&P 500 were each down 0.6% while the Nasdaq was off 0.7%.
Stocks on the Move
Macerich’s (MAC) board of directors officially rejected Simon's (SPG) offer to buy the firm for $95.50 per share this morning, and Simon subsequently withdrew its offer. Macerich's board stated that Simon's latest offer continues to substantially undervalue the firm. Macerich shares fell over 5% on the rejection while Simon shares were up 1%.
Shares of Monsanto (MON) were up over 2% this morning despite the firm reporting worse-than-expected earnings. The firm said ongoing earnings were $2.90 per share, below the $2.94 expected by analysts and the $3.15 a share in made in the year-ago quarter. The company also gave guidance for the full year that was short of expectations.
Foreign Markets
European markets were higher this morning PMI data showed improvement in the eurozone economy. The Paris CAC, FTSE 100 and Germany’s DAX were up 0.5%, 0.6% and 0.3% respectively.
Asian shares were mixed. The Shanghai Composite rose 1.7%, the Hang Seng was up 0.7% while the Nikkei 225 feel 0.9%.