Indexes Flat as Investors Await Jobs Report

U.S. stocks fell mildly on Wednesday, with the S&P 500 finishing the session near unchanged, as a better-than-expected report on the service sector helped neutralize another that had companies adding slightly fewer employees to their payrolls than anticipated in January.

Private employers added 175,000 jobs in January, slightly below the gain of 180,000 estimated by analysts. December’s increase in jobs was revised lower to 227,000 from an initial 238,000. The report comes two days before the government’s nonfarm payroll report, a gauge that includes public and private-sector employment.

The Institute for Supply Management’s non-manufacturing index for January came in at 54.0, showing expansion at a more rapid rate in January.

Federal Reserve Bank of Philadelphia President Charles Plosser said he anticipates the U.S. economy will expand 3 percent this year as the unemployment rate declines to 6.2 percent by the end of 2014, justifying a faster tapering of the central bank’s monthly asset purchases. Other central banker talk Wednesday had Atlanta Fed President Dennis Lockhart labeling stocks as in correction mode, and saying the market may have gotten ahead of itself.

Lockhart echoed the view of many analysts, many of whom believe Wall Street has been looking for a reason to take a break from 2013’s unsustainable climb that had the S&P finishing the year up nearly 30 percent.

European markets ended little changed following the release of positive economic data.

Meanwhile, Asian markets closed with mixed results. Indonesia’s economy grew by 5.7% in the fourth quarter, compared with the same period the previous year. That was better than expected and may calm fears about its ability to weather the storm battering it and the other so-called “Fragile Five” emerging markets

 

News Sources:  CNBC and CNN Money

The portfolio:

Not a bad start to the revised portfolio.  Closed the day net positive in a challenging market.  Perhaps the selling will stop and people will start to see this as a buying opportunity.  The Small Cap index, the Russell 2000 has taken a 8% hit so far this year, with 10% being a good watershed for a decent correction, I now expect that it may start to signal some buying too.

Bring on the bulls!

John

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