After two consecutive days of 100 plus point gains, the stock market declined in Wednesday morning and midday trading following reports of less than impressive growth in the nation's service sector.
The Institute for Supply Management announced Wednesday that its index of service activity reached 50.5 in January, just below the analyst prediction of 51. Any number over 50 indicates growth, but the margin here is slim and the number indicates only a minor growth from the posted 49.8 in December.
The disappointing news in the service sector dampened enthusiasm toward the recovery and stopped ascending stock in their tracks. Each day, the debate regarding whether the recovery is anemic or legitimate rages, with even the most seemingly minute new data tipping the scale. Today, the less than impressive activity negated a report that indicated private employers cut fewer jobs than predicted for January. In fact, 5,000 jobs were added by companies in the first month of 2010, but unemployment went up to 10.1 percent from 10 percent despite this.
Following the report, the Dow Jones industrial average slipped a considerable 55.93, or 0.5 percent, to 10,240.92. The Standard & Poor's 500 index lost 8.59, or 0.8 percent, to 1,094.73, while the Nasdaq index slipped 8.82, or 0.4 percent, to 2,181.24.
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