US stocks drop after economic data disappoints

NEW YORK: US stocks dropped Wednesday following disappointing new data on US job creation and the important services sector, which accounts for about 70 percent of economic activity.

The blue-chip Dow Jones Industrial Average tumbled 84.54 points (0.66 percent) to 12,722.97 in closing trade.

The broader S&P 500 index fell 9.36 points (0.69 percent) to 1,347.26, while the tech-rich Nasdaq Composite slid 13.39 points (0.47 percent) to 2,828.23.

Payrolls firm ADP said private companies added 179,000 jobs, slowing from 207,000 net new jobs in March. Analysts had projected that nonfarm payrolls would grow by 200,000 in April.

In a separate report, the Institute for Supply Management's index on the huge services sector showed slower growth in April.