Stocks were lower on Wednesday as a weaker euro zone report heightened concerns about the region's fiscal health and domestic data casts doubt on the strength of the economic recovery.
A report by payrolls processor Automatic Data Processing showed U.S. private employers added 119,000 jobs in April, well short of expectations, ahead of Friday's key payrolls report.
Euro zone factories sank further into decline last month, with the downturn hitting Italy and Spain hard and appearing to take root in France and Germany. European shares erased earlier gains, with the FTSEurofirst 300 .FTEU3 down 0.7 percent.
The reports came a day after the Dow closed at its highest level in more than four years on strong U.S. manufacturing data.
"These aren't good numbers this morning, they are certainly on the low end of expectations. However, in the broader theme you can't look at these numbers alone, you can't isolate them from the broader picture, which is continuing expansion, continuing improvement in U.S. manufacturing," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.
"It's at the low end of the range and I know it's disappointing, but in the broader context it's not really a game changer."
Adding to the negative tone, new orders for U.S. factory goods in March recorded their biggest decline in three years, even as they came in slightly above expectations.
Read more: http://www.reuters.com/article/2012/05/02/us-markets-stocks-idUSBRE83T09920120502
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