U.S. stocks retreated as concern about China’s economy overshadowed better-than-forecast growth in American employment and service industries.
The Standard & Poor’s 500 Index lost 0.2 percent to 1,442.85 at 10:05 a.m. in New York, snapping a two-day advance.
The Institute for Supply Management’s index of U.S. non-manufacturing businesses, which covers about 90 percent of the economy, rose to 55.1 in September from the prior month’s 53.7, the Tempe, Arizona-based group said today.
Another report today showed companies added 162,000 workers to payrolls in September following a revised 189,000 jump in August, figures from Roseland, New Jersey-based ADP Employer Services showed today. The median forecast of 38 economists surveyed by Bloomberg projected a 140,000 advance. Estimates ranged from 90,000 to 190,000 in the Bloomberg survey.
The data comes two days before the Labor Department’s September payrolls report is published. The jobless rate in the U.S. probably rose to 8.2 percent last month from 8.1 percent in August, as employers kept a lid on hiring, economists said. Payrolls increased by 115,000 in September, less than the 139,000 average over the first eight months of the year, the report may also show.