U.S stock advance on strong economic data
U.S stock market opened mostly mixed on Wednesday morning session, but progress higher on strong economic data releases. All three major indices book gain. Dow Jones Industrial Averages up 12.41 points (+0.06%) Nasdaq up 48.74 points (+0.77%), and S&P 500 up 8.25 points (+0.34%).
The trading situation has been dominated by rising tension between North Korean – U.S for several days. Though the market grows optimistic after unexpected President Trump approach to the conflict. The President told reporters, “All options open” on North Korea action instead of “Fire & Fury” reaction promised.
U.S economic data
On the economic front, ADP Non-farm employment change grows to 237k compared to 185k expectation. The jump regarded as positive after two declines in the previous reports. The report is the proxy to the Non-farm employment data which will be released on Friday and market participants could expect strong numbers.
U.S Prelim GDP also expands 3.0% vs. 2.7% consensus which is better than expected.
Lastly, U.S crude oil inventory shrunk 5.4 million barrels in the previous week. EIA has expected a deficit of 1.8 million barrels. Crude oil prices drift higher after the news, currently up 0.06% to $46.47 after initially fell to $45.84 today.
Fed Jerome Powell speech
The Fed governor Jerome Powell give a speech titled ‘The Role of Boards at Large Financial Firms.’ The keynotes from the speech:
- The Fed expects “strong and effective” boards of directors at banks of all sizes.
- Warned “Massive losses” incurred during crises from esoteric products
The Fed governor did not comment on the interest-rate outlook or the economy.
Stock headline
AAPL demolish short orders – The technology leaders hit all time high $163.89 which push the market capitalization above $840 billion dollars. The upward movement expected as the market anticipates iPhone 8 releases which might happen on 12th September.
After the market close, BOX, FIVE, SCVL, WDAY scheduled to report earnings.