June 4th 2014 – S&P 500 Logs Another Record Close Before The ECB Decision
Market View:
The market is in a holding pattern. We broke to a new high today, just. The ADP report for private sector jobs was below expectations, but the Fed’s Beige book on economic activity came it higher than expected. Volume was low also as we wait the decision by the ECB.
I am unsure of when the statement will be released by Mario Draghi, but given the time difference it will probably be early in the trading day followed by a press conference.
Market News:
U.S. stocks rose on Wednesday, lifting the S&P 500 into uncharted territory, after a measure of the U.S. services sector climbed more than expected in May, helping counter another report that had private-sector job creation failing to live up to expectations.
Stocks maintained near session highs after the release of the Federal Reserve’s Beige Book of regional business conditions, which found expansion in all of the Fed’s 12 districts.
The ISM non-manufacturing index rose to 56.3 in May, versus a 55.5 estimate, partially offsetting the latest reading from ADP and Moody’s Analytics, which found companies added 179,000 positions last month, versus expectations of 215,000 job additions.
Consumer discretionary and consumer staples led sector gains and telecommunications fared the worst as the S&P 500 rose 2.91 points, or 0.2 percent, to 1,927.15, taking out both its record intraday and closing high reached on Monday.
Other data Wednesday had the U.S. trade gap expanding in April as Americans bought large amounts of consumer goods, cars and business ware from overseas.
Financial data firm Markit’s gauge of the U.S. services sector expanded in May at its fastest rate since March 2012, up to 58.1 last month from a 55 read in April.
European markets ended little changed. Asian markets mostly ended with losses, though the Nikkei in Japan edged up.
THURSDAY: Challenger job-cut report, jobless claims, Fed’s Kocherlakota speaks, chain store sales, ECB mtg; Earnings from JM Smuckers, Joy Global, Diamond Foods
News Sources: CNBC and CNN Money