Dow Snaps Out of Funk
NEW YORK (TheStreet) -- Stocks caught a late bounce on Wednesday as recent selling pressure finally relented despite ongoing worries about the possibility of a double-dip recession.
The Dow finished up 30 points, or 0.3%, at 11,897 after touching an intraday low of 11,720. The gain allowed the blue-chip index to avoid a ninth straight negative session, a streak that hasn't occurred since 1978.
The S&P 500 inched up 6 points, or 0.5%, to 1260 to return to positive territory for 2011, while the Nasdaq climbed 25 points, or 0.9%, to 2694.
Stocks initially sold off sharply after activity across the services sector unexpectedly slumped, according to the Institute for Supply Management's non-manufacturing index. The index fell to 52.7, missing expectations for a reading of 53.7, after June's level of 53.3.Also, a reading on new jobs in the private sector in July suggested that the employment outlook was still gloomy. Companies added 114,000 jobs in July, according to Automatic Data Processing. The gain was slightly above consensus estimate for a 100,000 increase, but came short of June's revised increase of 145,000. Investors are expecting a lackluster July employment report from the federal government on Friday, with the unemployment rate is expected to sit tight at 9.2%. The market is projecting 84,000 additional nonfarm payrolls in July, after June's meager increase of 18,000 jobs.
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