May 31, 2012-Stocks Recover Closing Marginally Lower

While stocks moved sharply lower in early trading on Thursday, the markets staged a notable recovery attempt over the course of the session. Selling pressure re-emerged in late-day trading, however, resulting in a lower close. The major averages all ended the day in the red but well off their worst levels of the session. The Dow edged down 26.41 points or 0.2 percent to 12,393.45, the Nasdaq fell 10.02 points or 0.4 percent to 2,827.34 and the S&P 500 slipped 2.99 points or 0.2 percent to 1,310.33. The sell-off seen in early trading came as traders reacted negatively to a slew of U.S. economic data, including reports providing further signs of sluggishness in the labor market. Considerable selling pressure was generated by a report from payroll processor ADP showing weaker than expected private sector job growth. ADP said private sector employment rose by 133,000 jobs in May following a downwardly revised increase of 113,000 jobs in April. Economists had expected an increase of about 154,000 jobs. A separate report from the Labor Department showed that initial jobless claims rose to 383,000 in the week ended May 26th from the previous week's revised figure of 373,000. Jobless claims had been expected to come in unchanged at the 370,000 originally reported for the previous week. A Commerce Department report showing slower than previously estimated first quarter GDP growth also helped to drag stocks lower along with a report showing that Chicago-area business activity expanded at a much slower rate in the month of May.