Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street Moves Higher, Shrugging off ADP Disappointment

Stock MarketsSep 02, 2020 12:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened at fresh all-time highs on Wednesday, extending a rally built on hopes for more monetary stimulus from the Federal Reserve, and shrugging off disappointing labor market numbers.

Stocks continued their ascent at midday. By 12:25 PM ET (1645 GMT), the Dow Jones Industrial Average was up 240 points, or 0.8%. The S&P 500 was also up 0.8%, and the Nasdaq Composite was up 0.1%. The latter two had both closed at record highs on Tuesday.

Earlier, payrolls processor ADP had reported that private-sector employment only rose by 428,000 in the month to mid-August, well below expectations for a number anywhere between 950,000 and 1.2 million. The numbers are the latest sign that the recovery is flattening out after an initial sharp rebound from the lows of the second quarter.

However, the market was in "good news is good news and bad news is good news" mode again, as the data reinforced expectations of more stimulus from the Federal Reserve. Governor Lael Brainard had said late on Tuesday that the central bank will have to do more in order to meet its - now revised - target for inflation.

Traders even managed to put a positive spin on the continued deadlock over the next round of fiscal support measures, as Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi renewed contact after a two-week break for party conventions. Mnuchin rejected a trimmed-down $2.2 trillion proposal from Pelosi, while the Speaker said there were still "serious differences" between the two sides, which seem content to carry on trying to blame each other for the lack of breakthrough. 

Both Apple (NASDAQ:AAPL) stock and Tesla (NASDAQ:TSLA) stock were down, taking a breather from the indiscriminate buying that followed their stock splits at the end of last week.  Tesla was down 7%, while Apple was down 2.5%. Also hit by profit-taking was Zoom Video Communications (NASDAQ:ZM) stock, which fell 7% after rising over 25% in response to an exceptionally strong quarterly report on Monday evening.

Standout gainers included DraftKings  (NASDAQ:DKNG) stock, which rose 8% before giving back some of the gain, after the sports betting company said basketball legend Michael Jordan had taken an equity stake in the company and would join its board as an advisor. 

Likewise AMC Entertainment  (NYSE:AMC)t stock rose 10% after the movie theater operator said it will reopen 140 cinemas this week.

Stocks had gained sharply last week as the dollar weakened in response to the Fed news, but showed little sign of reversing as the US Dollar Index Futures corrected sharply upward in early trade in New York. Other assets kept more to their usual relationship with the dollar, as both Crude Oil WTI Futures and Bitcoin fell sharply

Wall Street Moves Higher, Shrugging off ADP Disappointment
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (19)
will iam
will iam Sep 02, 2020 7:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
AIM Investor Journal
AIM Investor Journal Sep 02, 2020 2:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
U.S. stock markets opened at fresh all-time highs on Wednesday... ALL TIME HIGHS... in the middle of a pandemic and with the economy on it's knees. This bubble is long overdue a correction. What will cause the pop? My best guess would be any one of the following: - Joe Biden taking a substantial lead (unlikely) - global banking crisis (should property prices fall in Asia, Europe then the US will follow) - Covid pandemic worsens this winter and lockdowns are implemented once again
Zera Tul
Zera Tul Sep 02, 2020 1:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FYI Powell has 25mln$ in BlackRock funds. Mostly in sp500 ETF. You think that's ok? Cause, in my opinion, there's a conflict of interest, and Powell should be SENTENCED for this. [SOURCE ->] click on "Powell Financial Disclosure" https://wallstreetonparade.com/2020/08/fed-chair-powell-had-4-private-phone-calls-with-blackrocks-ceo-since-march-as-blackrock-manages-upwards-of-25-million-of-powells-personal-money-and-lands-3-no-bid-deals-with-the-fed/
Alfred Cubin
Alfred Cubin Sep 02, 2020 12:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bad news affect investors not gamblers.
Selfmade DC
Selfmade DC Sep 02, 2020 12:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I gotta see it break thru resistance before we arenout the water
Ndangariro Maketiwa
Ndangariro Maketiwa Sep 02, 2020 11:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
November is coming and with Uncle Joe coming in the bears will be unleashed
Lakshmana Reddy
Lakshmana Reddy Sep 02, 2020 11:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
🤣🤣
Matt Kay
Matt Kay Sep 02, 2020 11:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fingers crossed!
Peter BullMarket
Peter BullMarket Sep 02, 2020 11:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Any bad or good news push the mark up at this stage. This is the final sprint of a bull before it collapses and die
Lakshmana Reddy
Lakshmana Reddy Sep 02, 2020 10:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
+ or - news market up
perplexed76 .
perplexed76 . Sep 02, 2020 10:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's not fun, after all
James Holmgren
James Holmgren Sep 02, 2020 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ignore everything chairman powellwill support thismarket he created....until everyone's pocket is empty
Edward Chong
Edward Chong Sep 02, 2020 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeap. u are right. powell learn well from jedi master bernanke. force is even more powerful. cheers.
Kaveh Sun
Kaveh Sun Sep 02, 2020 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Companies that r open try to squueze more work into employees. I haven met a nice,decent boss yet. All talk, act nice but truth is #.
Shaikh Alam
Shaikh Alam Sep 02, 2020 10:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shekhjauwadalam
Joeri Willems
Jurinho Sep 02, 2020 10:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Companies know whats coming in Q4 and 2021 Q1, hiring is frozen. Wall Street is on drugs. But an uncertain election, a guarantuee if Donald Trump is not re-elected that he will do whatever it takes to crash the stock market (and then yell look that's what happens when you fire me), a most likely world resurgence of the nCovid virus as of the cold months in Europe & America, .. Summarized: enjoy your bull drugs.. while it lasts. In theory, news like today would send the stock markets going belly down -1% ( 1mil jobs predicted -> only half in reality), yet the drugs keep investors pretty happy, positive, and away from the sell button.
Plopseven Schwartz
Plopseven Schwartz Sep 02, 2020 10:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The lunacy of a president crashing a stock market out of spite is psych0t1c, so not off brand here.
Joeri Willems
Jurinho Sep 02, 2020 10:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Plopseven Schwartz   psychotic, Trump, synonym
erik olsson
queue Sep 02, 2020 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dis gonna be guud
gary ross
gary ross Sep 02, 2020 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hisssssssssss.........POP!!
Shaikh Alam
Shaikh Alam Sep 02, 2020 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shelhjauwadalam
Shaikh Alam
Shaikh Alam Sep 02, 2020 10:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
shekhjauwadalam
Jozef Drozd
Jozef Drozd Sep 02, 2020 10:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sell this market now and ask the questions later .
Youngwealth Richworld
Youngwealth Richworld Sep 02, 2020 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Whats going on
Tom Pym
Tom Pym Sep 02, 2020 9:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can only shrug so far before your shoulders hit your ears...
Hunt Richardson
Hunt Richardson Sep 02, 2020 9:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
once again "economists' and labor "analysts" are WAY off in their short term "expectations". These are the people responsible for rigging the markets. How much are they paid to be wrong..a lot?!
Michael Leffler
Michael Leffler Sep 02, 2020 9:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
economists again doing an excellent job of making astrologists and flat earthers look legit...
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email