Stock market today: Stocks close higher after ADP jobs data
Stocks closed higher Wednesday as investors cheered another bad-news-is-good-news reading on the labor market. However, excitement was tempered after a separate report sparked recession fears.
Before the opening bell ADP The U.S. only added 177,000 private payrolls to its total in August. This is well below the 200,000 expected by economists, and the downwardly-revised 324,000 increase in July. The Federal Reserve is concerned that a stubbornly tightening labor market is in conflict with its efforts to reduce unemployment. The inflation rate is estimated to be aroundThe data today is a welcome surprise.
On the economic calendar, the second reading of Q2 gross national product (The following are some of the most effective ways to increase your ROI), which was revised down to 2.1% from the initial reading of 2.4%. Both the second-quarter personal consumption and expenditures (PCE) index – the Fed’s preferred measure of inflation that tracks consumer spending – and the core PCE, which excludes volatile food and Energy Prices were revised lower than the estimates.
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“The [private payrolls] report and this morning’s downward revision to GDP imply that the inflation-ridden, red-hot services sector may finally be reaching supply and demand balance, a welcome development relieving market players of further monetary policy intensity at the moment,” says José Torres, senior economist at Interactive Brokers.
Torres warns a slowing labor market and economy will have a negative impact on both corporate earnings as well as consumer spending. For now, the markets are embracing the recent batch weaker economic data, without considering “the risk of recession The economist says that the profitability of businesses is deteriorating.
In fact, all three indexes ended the day higher for a forth consecutive day. The Nasdaq Composite The final result was 14.019, a 0.5% increase. S&P 500 The 4,514 gained 0.4% and the Dow Jones Industrial Average The 0.1% increase to 34,890 is a small but significant improvement.
3D Systems, Stratasys rise on Apple news
In single-stock news, 3D printing stocks 3D Systems (DDD + 2.0%) Stratasys After the SSYS (Systèmes d’assurance, +2,4%), each gained ground. Bloomberg report Apple (AAPL +1.9%) tests 3D printers for the steel chassis in some of its smartwatches. Apple could expand the use of 3D printing on other products, if this test proves successful. This will improve the tech company’s manufacturing process.
Elsewhere, HP After earnings, the stock of HPQ fell 6.6%. The printer and PC maker – and member of the Berkshire Hathaway equity Portfolio – reported fiscal third-quarter earnings of 86 cents per share, matching analysts estimates. However, revenue of $13.2 billion fell short – marking HPQ’s third straight top-line miss – and the company gave disappointing fiscal fourth-quarter guidance.
Enrique Lores, CEO of the company, said that “the macro situation has not improved as quickly as expected” in the company’s earnings report. He added that “the outlook is largely influenced by the continued aggressive price environment in PCs and the sluggish Chinese demand.”
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