* 158,000 private jobs added in June vs. est. 185,000 -ADP
* Jobless claims rise for third straight week
* Tesla slips after Model S fails to ace some tests
* Dow down 0.48 pct, S&P 500 down 0.62 pct, Nasdaq down 0.65
(Updates to mid-afternoon, changes byline)
By Chuck Mikolajczak
July 6 (Reuters) – U.S. stocks were lower on Thursday after
a round of disappointing labor market data clashed with the
prospect of a more hawkish Federal Reserve, with rising tensions
in the Korean peninsula providing additional pressure.
Private employers added 158,000 jobs in June, the ADP
National Employment Report showed, coming in below the estimated
gain of 185,000 and suggesting cooling in the U.S. labor market
as it nears full employment.
Another set of data showed weekly jobless claims rose for
the third straight week, climbing to 248,000 and topping the
While the data still indicated a tight labor market, the
reports hint at a soft monthly nonfarm payrolls report on
Friday, which includes hiring in both the public and private
The softer data followed minutes from the Federal Reserve’s
June meeting released on Wednesday showing policymakers were
increasingly split on the inflation outlook and how it might
affect the pace of interest rate increases.
Those two factors helped push yields on U.S. Treasuries
higher and dampened the attractiveness of equities.
“More than anything you’ve had a fairly good-sized move up
on the 10-year Treasury (yield) over a short period,” said Jim
Paulsen, chief investment strategist at The Leuthold Group in
“Investors are on a very short term reacting to where yields
are at this moment compared with only a week ago.”
Geopolitical tensions also weighed on sentiment, with U.S.
President Donald Trump vowing on Thursday to confront North
Korea “very strongly” following its latest missile test and
urging nations to show Pyongyang that there would be
consequences for its weapons program.
The Dow Jones Industrial Average fell 102.13 points,
or 0.48 percent, to 21,376.04, the S&P 500 lost 15.13
points, or 0.62 percent, to 2,417.41 and the Nasdaq Composite
dropped 39.96 points, or 0.65 percent, to 6,110.90.
Shares of Tesla dropped 5.84 percent after the
luxury electric carmaker’s Model S did not receive the top score
in certain tests by the Insurance Institute for Highway Safety.
General Electric lost 3.97 percent as the worst
performer on the Dow after the European Commission accused the
company of providing misleading information during a merger
L Brands plunged 13.93 percent, the worst performer
on the S&P 500, after the Victoria’s Secret owner’s June sales
came in below expectations.
Declining issues outnumbered advancing ones on the NYSE by a
3.12-to-1 ratio; on Nasdaq, a 2.35-to-1 ratio favored decliners.
(Additional reporting by Rodrigo Campos; Editing by Meredith