[Thursday, September 5, 2019]
News that trade talks between the U.S. and China will resume early next month raised investor hopes for a resolution. Along with encouraging economic data buyers stepped in. The ADP Nonfarm Employment Change for August exceeded expectations and July factory orders came in better than expected. The August ISM Non-Manufacturing PMI also topped expectations. A key number, the August Payrolls Report, is out tomorrow before the bell. Combined, the data may challenge projections for an imminent recession. Regardless investors liked today’s news and stocks were solidly higher at the close. Combined with yesterday’s gains all of Tuesday’s losses, and more, have been recouped. Technically the broader S&P 500 closed above the 50-day moving average for the first time since late July and is within 2% of its all-time high. The Index added +38.22 to 2,976.00 today. The Dow gained +372.68 to 26,728.15 and the Nasdaq Composite moved up +139.95 to 8,116.83. The Russell 2000 also enjoyed solid gains, up +1.75%, or 25.99 points to 1,510.75. Technology stocks led the day among the major groups. Only Utilities, Real Estate and Consumer Staples were lower. Crude prices were mostly unchanged. Gold slid -34.10 to 1,526.30. Bond yields jumped; the 10-Year moved up more than +7% to offer 1.565% The VIX fell to 16.27.