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. But excitement was muted after a separate report on the economy sparked fears of recession.
Before the opening bell ADP The U.S. only added 177,000 private jobs in August. This is well below the 200,000 expected by economists, and the revised downwardly 324,000 increase in July. Federal Reserve officials have repeatedly expressed their concern about a persistently tight labor market that is in conflict with the Fed’s efforts to reduce unemployment. The inflation rate is estimated to be aroundThe data today is a welcome surprise.
The second reading of the Q2 Gross Domestic Product (%) was also on the calendar.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 The 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 of the challenges that a slowing economy and labor market could pose to corporate earnings as well as consumers. The markets have reacted positively to the latest batch of weaker data on the economy, but they are not yet considering “the risk of recession The economist says that the profitability of businesses is deteriorating.
In fact, all three indices closed higher on a fourth consecutive day. The Nasdaq Composite The final result was 14.019 at 0.5%. S&P 500 The 4,514 gained 0.4% and the Dow Jones Industrial Average The number of 34,890 increased by 0.1%.
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 of these gained ground. Bloomberg’s report Apple (AAPL +1.9%) tests 3D printers for the manufacture of steel chassis in some of its new smartwatches. Apple may expand the use of 3D printing on other products, if the test proves successful. This would improve the manufacturing process for the tech giant.
Elsewhere, HP The stock price of (HPQ), fell by 6.6% following earnings. 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 its earnings call. 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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