Stocks Closed Lower Amid Weak Jobs, Factory Data

U.S. stocks closed lower on Wednesday, as weaker-than-estimated data on hiring and manufacturing reinforced concern that economic growth may be slowing. The Dow Jones Industrial Average dropped 77.94 points, or 0.44% to 17,698.18. The S&P 500 shed 8.20 points, or 0.40%, to 2,059.69. The Nasdaq Composite was down 20.66 points, or 0.42%, to 4,880.23.

Private payrolls increased by 189,000 last month, the smallest gain since January 2014, the ADP National Employment Report showed on Wednesday. That was well below economists’ expectations for an increase of 225,000.

In a separate report, the Institute for Supply Management (ISM) said its national factory activity index fell to 51.5 last month, the lowest reading since May 2013, from 52.9 in February. A reading above 50 indicates expansion in the manufacturing sector.

McDonald’s Corp. plans to raise pay by more than 10% and add benefits like paid vacation for workers at U.S. restaurants it operates, an effort to rejuvenate the struggling fast-food giant that offers fresh evidence of rising wage pressure in the American labor market. Starting July 1, McDonald’s will pay at least $1 per hour more than the local legal minimum wage for employees at the roughly 1,500 restaurants it owns in the U.S.

KBR Inc has agreed to pay $130,000 to settle what the U.S. Securities and Exchange Commission on Wednesday called its first whistleblower protection case over improperly restrictive language in confidentiality agreements.