- Dow Jones, S&P 500 and NASDAQ decline on Tuesday amid concerns over Greece.
- ECB Governing Council meeting on Greece to begin on Wednesday.
- ADP Institute expected to show the creation of 200,000 private sector jobs in April, according to forecasts.
Wall Street traded lower on Tuesday, with the Dow Jones Industrial Average shedding more than 100 points amid renewed concerns over Greece’s debt negotiations.
The Dow Jones (DJI) tumbled 0.8 percent or 142.2 points to 17,928.20, easing off last week’s highs. The S&P 500 Index was also down, shedding 1.2 percent or 25.03 points to 2,089.46. The large-cap benchmark had posted its biggest back-to-back gain in over a month.
The tech-heavy NASDAQ Composite Index, having been the best performing market gauge in recent months, fell 1.6 percent or 77.6 points to 4,939.33.
The US economy is showing signs of progress following last quarter’s abrupt slowdown, according to the Institute for Supply Management. The ISM non-manufacturing PMI, a leading gauge of the US service economy, climbed 1.3 percentage points to 57.8 in April. A total of 14 non-manufacturing industries reported growth, as employment rose for the fourteenth consecutive month.
US Jobs Data
The ADP Institute on Wednesday is expected to show the creation of 200,000 private payrolls in April, according to forecasts. Job growth slowed to 189,000 in March, the payroll processor reported last month. Official government figures showed the creation of just 126,000 jobs in March, the lowest since December 2013.
Bailout Deal Eludes Greece-EU Negotiations
Negotiations between Greece and its European partners crossed more “red lines” on Tuesday, with Athens blaming its creditors for failing to lift the devastating bailout impasse that is pushing Greece closer to default. A government official said on Tuesday that Greece would not accept new bailout terms until the European Union and International Monetary Fund – which along with the European Central Bank make up the troika – ease some of their demands.
The troika is withholding a critical loan tranche – valued at €7.2 billion – until Athens puts forward satisfactory plans for economic reform.
The ECB’s Governing Council will address the Greek debt crisis on Wednesday when it coalesces in Frankfurt. On the agenda will be the ECB’s decision to increase the amount of liquidity it is offering to Greek banks, a strategy that has been described as risky.
Greece is seeking to finalize a new bailout framework before the Eurogroup ministerial meetings on May 11.