Wall Street closes higher on robust data
Following yesterday's drop, U.S. stocks were able to record gains on Thursday on the back of robust macro data, with all three major equity indexes inching closer to their record levels.
- Forex today: dollar catches a bid, Trump dumps Paris accord, nonfarm payrolls next catalyst
According to ADP, private sector employment in the U.S. increased by 253,000 jobs in May, well above the market consensus of 185,000, ramping up the expectations for a strong NFP reading tomorrow, which would confirm a 25 bps rate hike in June. Paul Springmeyer, investment managing director at the Private Client Reserve at U.S. Bank in Minneapolis explained Reuters that more than anything it (today's advance in stocks) was employment data driven, and it was such a resounding uptick over expectations and it bodes well for the Fed; certainly the numbers are very, very high in terms of the likelihood of that (hike) coming through for June.
The Dow Jones Industrial Average added 135.53 points, or 0.65%, to 21,144.18, the S&P 500 rose 18.26 points, or 0.76%, to 2,430.06 and the Nasdaq Composite gained 48.31 points, or 0.78%, to 6,246.83.
Headlines from the U.S. session:
- US Pres. Trump: U.S. to withdraw from Paris Accord
- Oil intermarket: WTI sold off, but market tone to offer support at $48.00?
- US Construction Spending lost steam - Wells Fargo
- Inflationary concerns a focus for markets this week - Nomura
- US ISM: Production, new orders and employment remain in growth mode - Wells Fargo
- Atlanta Fed: GDPNow model forecast for real GDP growth Q2 of 2017 is 4.0%
- Ex-FBI James Comey to testify before US Intelligence Committee on June 8 - BNO News
- CME Group FedWatch essentially confirms June rate hike
- EIA: U.S. commercial crude oil inventories decreased by 6.4 million barrels from the previous week