(As of 7:15 am PST)
US equities are up to start
Wednesday’s session, as investors digested mixed global data on the last day of
the third quarter. Despite today’s opening move higher, markets remain on pace
to record their worst quarter since 2011. The S&P500 enters today’s session
down -2.5% for the week and -8.7% for the quarter. A strong report on Chinese
consumer sentiment kicked things into gear early. Despite a fractured stock
market, Chinese households are more optimistic than they’ve been in over a year
according to the report. The sentiment number sent Asian markets rallying
overnight with optimism spilling over into the European and US open. On the home
front, economic data is mixed today. According to payroll processor, ADP, the
private sector added 200,000 jobs in September, slightly better than expected.
Friday’s non-farm payrolls report will give us a better picture of labor market
conditions but for now the ADP report is helping to sustain the market’s opening
gains. On a more disappointing note, manufacturing activity in the Chicago
region fell into contractionary territory in September, as production fell to
the lowest level since July 2009. Despite the negative report the markets are
holding on to early gains, probably due to technical buying and end of quarter “window-dressing”
from mutual fund managers. Gold is down 1% today, while oil prices are up
slightly.
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