U.S. stocks were mixed after weaker-than-expected jobs data

By Liz Moyer 

Investing.com -- U.S. stocks were mixed after jobs data gave signs of a weakening economy.

At 11:36 ET (15:36 GMT), the Dow Jones Industrial Average rose 72 points or 0.2%, while the S&P 500 fell 0.4% and the NASDAQ Composite fell 1.2%.

Weaker-than-expected private payroll numbers in March stoked concern that the Federal Reserve’s interest rate increases in the past year could tip the economy into a recession.

ADP’s report said payrolls rose by 145,000 versus expectations of a gain of 200,000 jobs. That combines with weaker-than-expected job openings numbers for February and weaker factory orders.

The worse-than-expected numbers are factoring into the market’s expectations for further Fed moves. Futures traders have shifted their view and are now mostly betting on the Fed to pause its rate hikes at its meeting in May. About 60% hold that view according to the Fed tracker, while 40% see the Fed raising rates by a quarter of a percentage point.

The ADP report is just the preview for the closely watched jobs report from the government, which comes out on Friday. That broader report could provide the Fed with more reason to pause or hike rates in May.

Final data on ISM non-manufacturing activity for March came in lower than expected, at 51.2 versus forecasts for 54.5.

Johnson&Johnson (NYSE:JNJ) shares rose 3.3% after the pharmaceutical maker offered an $8.9 billion settlement for talc-related lawsuits, up from its original proposed $2B offer.

FedEx Corporation (NYSE:FDX) shares rose 1.2% after the logistics company said it would consolidate operating divisions to cut costs and boost efficiency.