# Stocks, markets mixed as Wall Street deciphers diverging signals
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-04
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: U.S. Stocks Mixed as Jobs Growth Slows: Market Update
Meta Description: Despite slower U.S. private payroll growth, demand for services rose, with Federal Reserve officials signalling pullback. Stocks mixed, Treasuries slightly
URL: https://financedigest.com/stocks-markets-mixed-as-wall-street-deciphers-diverging-signalshtml

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By Lawrence Delevingne

BOSTON (Reuters) -Stocks, Treasuries and other major markets were mixed Wednesday after July data showed that U.S. jobs growth [slowed but demand](https://www.financedigest.com/inpost-sees-stronger-2022-but-warns-of-slowing-demand.html "InPost sees stronger 2022 but warns of slowing demand") for services increased, all as Federal Reserve officials signaled a likely pullback in market support.

U.S. private payrolls [increased far less than expected](https://www.financedigest.com/polyimide-fibers-market-is-expected-to-increase-at-a-healthy-cagr-of-around-5-over-the-forecast-period-of-2021-2031.html "Polyimide Fibers Market is expected to increase at a healthy CAGR of around 5% over the forecast period of 2021-2031") in July, likely constrained by shortages of workers and raw materials. Employers added 330,000 jobs [last month](https://www.financedigest.com/fintech-trends-to-look-out-for-during-the-last-six-months-of-2019.html "Fintech trends to look out for during the last six months of 2019"), the ADP National Employment Report showed on Wednesday.

This compared with an increase of 695,000 forecast by economists [polled by Reuters](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll").

The Dow Jones Industrial Average fell 316.43 points, or 0.9%, to 34,799.97, the S&P 500 lost 18.54 points, or 0.42%, to 4,404.61, while the Nasdaq Composite added 12.23 points, or 0.08%, to 14,773.53. MSCI’s gauge of stocks [across the globe](https://www.financedigest.com/sales-of-medical-beds-across-the-globe-are-estimated-to-exceed-us-3000-mn-in-revenues-by-2022-end.html "Sales of Medical Beds Across the Globe are Estimated to Exceed US$ 3,000 Mn in Revenues by 2022-end") shed 0.10%.

The market is surprising resilient given the weak ADP numbers and a bond market apparently signaling slower growth ahead,” Nancy Tengler, chief investment officer of Nashville-based [asset manager](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments") Laffer Tengler Investments, said.

She [pointed to the positive growth indicators from manufacturing inventories and demand for services](https://www.financedigest.com/service-the-cfo-why-context-is-worth-80-iq-points.html "Service & The CFO: Why Context Is Worth 80 IQ Points"), but cited concern over COVID-19 in China and related economic slow-downs.

The Institute for Supply Management said on Wednesday its non-manufacturing activity index [hit 64.1 last month](https://www.financedigest.com/german-bonds-set-for-worst-month-in-decades-as-inflation-hits-new-highs.html "German bonds set for worst month in decades as inflation hits new highs") from 60.1 in June, the highest reading in its history.

Strong corporate [profits have recently eased concerns over the coronavirus pandemic as vaccine roll-outs continue apace in developed markets](https://www.financedigest.com/compelling-tips-to-make-profitable-investments-in-the-stock-market.html "Compelling Tips to Make Profitable Investments in the Stock Market"). But investors are also weighing inflationary pressures and a growing belief that the Federal Reserve may soon [signal its intention to trim support for the economy](https://www.financedigest.com/the-signals-in-the-noise-what-to-look-out-for-in-the-economy.html "The signals in the noise – what to look out for in the economy").

Federal Reserve Vice Chair Richard Clarida said on Wednesday that the U.S. economy is on track to meet the employment and [inflation hurdles the Federal Reserve has set for raising interest rates](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked"), echoing comments by other officials.

Traders sent U.S. [Treasury yields](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") slightly higher, apparently shifting their focus away from the disappointing payroll report.

Ten-year notes last fell 7/32 in price to yield 1.1953%; they previously touched 1.127%, their lowest [since February](https://www.financedigest.com/dollar-heads-for-first-weekly-gain-since-february.html "Dollar heads for first weekly gain since February").

[Investors are still waiting for the latest](https://www.financedigest.com/a-tale-of-two-central-banks-what-the-latest-interest-rate-decisions-mean-for-investors.html "A tale of two central banks – what the latest interest rate decisions mean for investors") U.S. non-farm payroll numbers on Friday – the last before Federal Reserve leaders convene in Jackson Hole, Wyoming, to [discuss policy and decide future stimulus strategy](https://www.financedigest.com/new-zealand-pm-meets-biden-to-discuss-u-s-indo-pacific-strategy.html "New Zealand PM meets Biden to discuss U.S. Indo-Pacific strategy").

Oil [prices were negative as the spread of the Delta variant of COVID-19 in top consuming countries outweighed Mideast geopolitical tensions and a fall](https://www.financedigest.com/uk-house-prices-stabilise-after-four-month-fall-halifax-says.html "UK house prices stabilise after four-month fall, Halifax says") in U.S. inventories.U.S. crude fell 2.93% to $68.49 per barrel and Brent was at $70.73, down 2.32% on the day.

The [dollar recovered from a fall on Wednesday brought on by the jobs data](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data"). After a steady day, the [dollar index against major currencies](https://www.financedigest.com/worst-not-over-for-em-currencies-as-u-s-dollar-thunders-on-reuters-poll.html "Worst not over for EM currencies as U.S. dollar thunders on: Reuters poll") < =USD> fell as much as 0.2% before turning back up. The dollar index was up around 0.25% as of midday.

Spot gold added 0.1% to $1,810.96 an ounce. U.S. gold futures fell 0.04% to $1,809.30 an ounce.

(Reporting by Lawrence Delevingne; Editing by Dan Grebler and Alexander Smith)


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