Growth in the U.S. Service Sector Slowed in June - Stock Market Hit.

Stocks were on a roll Tuesday until a little after noon, then ...

The U.S.'s vast service sector grew more slowly in June, the latest sign that the economic recovery is loosing steam.


An index based on a survey of U.S. purchasing managers indicated that service-related businesses grew for the sixth month in a row, but at a slower pace than the month before. The Institute for Supply Management's index of nonmanufacturing activity dipped to 53.8, compared with 55.4 in May. Numbers over 50 represent growth.
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For the economy to grow, it is crucial for the service sector, which accounts for about two-thirds of gross domestic product, to pick up the slack.

From the WSJ (subscription may be required).

At the close, the market staged s modest rally and ended in the black, but most of the early morning euphoria was dissipated as the afternoon wore on and the market indexes dropped to the negative column.  In the end, investors needed to put come cash to work and bid the market up, but very reluctantly.