US stocks moved higher on Wednesday following better than expected jobs data and positive manufacturing news. Large-cap tech stocks continued to lead stocks higher, driven by a nearly 5% increase in Amazon. While the Nasdaq 100 hit all-time highs, the Russell 2000 slipped. Most sectors in the S&P 500 index were higher, led by Real-estate and Communications, Energy shares bucked the trend.
Crude oil prices rose on Wednesday following a larger than expected draw in inventories. Despite the rally, the price action failed to buoy the energy sector. ADP private payrolls rose more than expected, and the ISM manufacturing index moved back into positive territory. The VIX volatility index declined below 29 for the first time in 3-months. Apple announced on Wednesday that it would close an additional 30 stores in the US bringing the total number of closed stores to 77. The uptick in cases in California had the Governor close in-room dining again.
ADP Prive Payrolls Rise more Than Expected
ADP reported on Wednesday that US Private payrolls grew by 2.369 million for the month, a bit lower than the 2.5 million. This comes following an upward revision to the prior month which was one of the largest revisions on record according to ADP. The total for June declined from the previous month, following an upward revision to 3.065 million. ADP initially said May saw a loss of 2.76 million, which was a revision of nearly 6-million jobs.
ISM Manufacturing Rose More than Expected
Manufacturing in the US increased more than expected in June according to the Institute of Supply management. The ISM manufacturing index rose to 52.6 up from May’s 43.1 and a 41.5 trough in April Expectations had been for a reading of 49.5. Employment jumped to 42.1 from 32.1 in May, while production surged 24.1 points to 57.3. New orders rose 24.6 points to 56.4 and prices increased from 40.8 to 51.3. Of the subindexes, only supplier deliveries showed a monthly decline, dropping 11.1 points to 56.9.
This article was originally posted on FX Empire
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