New York – Wall Street’s two-day rally ended Wednesday as investors awaited the Labor Department’s jobs report and registered their disapproval of Yahoo’s announcement of its biggest management shakeup in more than five years.
Investors pulled back to position themselves ahead of the government’s November payroll report due Friday and Tuesday’s Federal Reserve meeting. A series of recent economic reports have led to speculation that policymakers might cut rates after more than two years of hikes that ended in June.
However, Wall Street largely brushed off an employment indicator published by ADP and Macroeconomic Advisers that indicated the Labor Department will report an increase of 158,000 jobs – an increase that might dissuade the Fed from nudging rates downward.
Economists are looking for a 110,000 rise in jobs.
“You’re seeing a lot of portfolio adjustments that will go right through to the Fed meeting, and some year-end window dressing will carry us through the end of the month,” said Scott Fullman, director of investment strategy for Hapoalim Securities. “The jobs report on Friday is obviously going to have an impact, but everyone wants to know what the Fed is thinking.”
Technology shares remained under pressure after Yahoo announced a corporate overhaul to help boost competitiveness against Google. Yahoo, which has struggled this year while Google flourished, fell 57 cents to $26.86.
Business-software maker Novell was under pressure after releasing a disappointing forecast. Its shares lost 34 cents, or 5.4 percent, to $5.99.
The Dow Jones industrial average fell 22.35 to 12,309.25 after rising a total of 137 points Monday and Tuesday. Broader stock indicators also fell. The Standard & Poor’s 500 index fell 1.86 to 1,412.90, and the Nasdaq composite index declined 6.52 to 2,445.86.
