U.S. stocks fell from record highs yesterday after the earnings of a major U.S. automaker and a private sector jobs report came in lower than expected.
According to the payroll company ADP Job creation at private companies tumbled in July as fears mounted over the spreading delta variant. Employers added 330,000 positions for the month, a sharp deceleration from the downwardly revised 680,000 in June. It’s also well below the 653,000 Dow Jones estimate. July’s job growth was also the smallest gain since February.
U.S. service providers expanded in July at the fastest pace on record dating back to 1997 as measures of business activity, new orders and employment all improved. The Institute for Supply Management’s services index jumped to 64.1 last month from 60.1 in June, topping all estimates in a Bloomberg survey of economists. Readings above 50 indicate expansion. The figures underscore the massive vaccine-fueled snapback in demand for services like dining out and travel in recent months. At the same time, global demand is picking up. New export orders for U.S. service providers expanded at the fastest pace since 2007.