The Register Citizen (Torrington, CT)
Stocks skid on worries about hiring and growth
NEW YORK » U.S. stocks took their biggest loss in more than six weeks Thursday as investors reacted to mounting evidence that hiring has slowed. Energy and health care companies fell sharply, and so did retailers.
Stocks slumped after ADP, a payroll processing company, said private businesses added fewer jobs in June than investors had expected. The losses deepened in afternoon trading.
Bond prices fell and yields jumped, which hurt companies that pay large dividends, such as major drug companies and real estate investment trusts. Retailers sank after L Brands, the parent company of Victoria’s Secret, reported weak sales in June.
The Standard & Poor’s 500 index dropped 22.79 points, or 0.9 percent, to 2,409.75. The Dow Jones industrial average fell 158.13 points, or 0.7 percent, to 21,320.04.
The Nasdaq composite sank 61.39 points, or 1 percent, to 6,089.46. The Russell 2000 index, which is comprised of smaller, more U.S.-focused companies, shed 19.33 points, or 1.4 percent, to 1,400.81.
ADP’s survey showed that private U.S. businesses added 158,000 jobs in June, and the firm lowered its estimates for job growth in April and May.
All of the 61 health care companies listed on the S&P 500 lost ground. Biotech drugmaker Amgen declined $2.54, or 1.5 percent, to $171.72 and medical device maker Medtronic lost $1.64, or 1.8 percent, to $87.26.
Drugmaker Merck skidded $1.06, or 1.7 percent, to $63.10 after it stopped two studies of its cancer drug Keytruda as a treatment for multiple myeloma. Merck said more patients who were treated with Keytruda died, and the Food and Drug Administration halted the studies because the risks of a treatment regimen that included Keytruda outweighed the potential benefits.
L Brands said its sales fell 6 percent in June as the company continues to struggle with the effects of ending its swimwear business. The stock gave up $7.62, or 14.1 percent, to $46.49, by far the largest loss of any S&P 500 company. Athletic apparel maker Under Armour fell $1.49, or 6.7 percent, to $20.65 and Hanesbrands shed 65 cents, or 2.8 percent, to $22.53. Signet Jewelers lost $2.52, or 3.9 percent, to $61.57.