US Open: Markets lower as ADP job report disappoints, oil prices gain

US stock markets opened lower on Wednesday on disappointing jobs data, while oil stocks gained on data showing an increase in supplies.

NASDAQ led declines, falling 0.56%, while Dow Jones and S&P fell by 0.47% and 0.45% respectively.

The US economy created 212,000 jobs in February, representing a slowdown in growth from January. according to data from the ADP National Employment Report,. It undershoot economist expectations for 219,000 jobs.

The ADP report is widely seen as a precursor to Friday’s non-farm payrolls report which is expected to show the US economy generated 230,000 jobs.

Paul Dales, Senior US Economist at Capital Economics said: “The harsh weather in recent weeks therefore means there is a chance that the official payrolls figure will be lower than the ADP reading. But […] we think this risk is small. We’re sticking with our forecast that official payrolls rose by a healthy 230,000 last month.”

Meanwhile, ISM Manufacturing data also fell just shy of the expected reading of 53, at 52.9 in February, falling from 53.5 the previous month.

US oil prices gained as a US government report showed that crude supplies rose by more than 10m barrels in the latest week. Concerns of oversupply escalated after the US Energy Information Administration early Wednesday reported that crude inventories climbed 10.3m barrels for the week ended 27 February.

US crude stocks have risen for seven consecutive weeks, by at least 4m barrels each week, according to EIA data.

Restaurant chain Bob Evans Farms plummeted 18% after reported earnings missed expectations and the company confirmed it would not pursue a sale of BEF Foods.

Cloud-software company Veeva Systems saw shares drop 13% on underwhelming fourth quarter earnings.

Meanwhile, American Eagle Outfitters’ fourth quarter profits and revenues rocketed shares in the teen retailer by 9.3%.