US STOCKS-Wall Street tumbles as trade war threatens U.S. economy

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* Indexes: Dow -1.85%, S&P 500 -1.78%, Nasdaq -1.65%
* Sept. U.S. private payrolls grow slower than expected
* Ford falls as quarterly auto sales drop
* Activision Blizzard down on Bernstein rating cut
* Lennar up on better-than-expected profit

(Updates to afternoon)
By Noel Randewich
Oct 2 (Reuters) - Wall Street's main indexes were on track
for their sharpest one-day declines in nearly six weeks on
Wednesday after a report on private sector hiring suggested that
fallout from the U.S.-China trade war is contaminating the U.S.
economy.
All the 11 major S&P sector indexes were in the red, with
technology .SPLRCT , materials .SPLRCM and energy .SPNY
each down more than 2%.
The ADP National Employment Report showed private payrolls
growth in August was not as strong as previously estimated, and
said "businesses have turned more cautious in their hiring,"
with small enterprises becoming "especially hesitant."
That added to fears sparked on Tuesday when a report showed
U.S. factory activity contracted to its lowest level in more
than a decade.
The recent weak data has shaken investor faith in the
strength of the domestic economy, which had shown relative
resilience in the face of slowing global growth. Confidence in
the U.S. economy has helped support Wall Street this year.
"If China buys less from us, we have less to manufacture,
fewer orders to fill. This data is indicating we are not immune
to this trade dispute, that it's hurting us as well as China,"
said Sam Stovall, chief investment strategist at CFRA Research.
The focus is now on the Labor Department's more
comprehensive jobs report on Friday for further clues on the
health of the U.S. economy.
The S&P 500 .SPX and the Dow .DJI slipped below their
100-day moving averages for the first time in about a month.
Many investors believe that falling below such moving averages
means the indexes are likely to fall further.
The S&P 500 is now about 5% below its all-time high hit in
July after coming within striking distance of the mark two weeks
ago.
At 2:38 p.m. ET, the Dow Jones Industrial Average .DJI was
down 1.85% at 26,082.02 points, while the S&P 500 .SPX lost
1.78% to 2,887.9.
The Nasdaq Composite .IXIC dropped 1.65% to 7,778.19.
The Cboe Volatility Index, or VIX .VIX , an options-based
gauge of investor anxiety, rose 1.9 points to 20.47, its highest
in about a month.
Activision Blizzard Inc ATVI.O dropped 2.0% after
Bernstein downgraded the videogame maker's shares to "market
perform."
Ford Motor Co F.N shares fell 3.1% after the carmaker
reported a fall of about 5% in U.S. auto sales for the third
quarter. General Motors Co GM.N slumped 4.0% after its
quarterly sales came in slightly short of U.S. car shopping
website Edmunds' forecast.
Among bright spots, homebuilder Lennar Corp LEN.N rose
2.6% after the company reported a better-than-expected profit as
cheaper mortgage rates led to higher demand for its homes.
Johnson & Johnson JNJ.N gained 1.3% after the drugmaker
said it will pay $20 million to settle claims by two Ohio
counties, allowing it to avoid an upcoming federal trial seeking
to hold the industry responsible for the nation's opioid
epidemic. Declining issues outnumbered advancing ones on the NYSE by a
3.94-to-1 ratio; on Nasdaq, a 2.85-to-1 ratio favored decliners.
The S&P 500 posted 3 new 52-week highs and 13 new lows; the
Nasdaq Composite recorded 4 new highs and 175 new lows.

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Wall Street's main indexes hit ~1 month lows https://tmsnrt.rs/2nJ2E3j
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