Publish date:

Stocks Indicated Higher as Investors Parse Jobs, Factory Reports

Stock investors on Wednesday were giving no sign of slowing their interest in buying, as the indexes indicated a higher start on Wall Street.
Author:

Stock investors on Wednesday were giving no sign of slowing their interest in buying, as the indexes indicated a higher start on Wall Street.

The day after the S&P 500 finished a seventh month of gains, futures on the index, and on the Dow Jones Industrial Average, were almost 0.4% higher.

The move follows across-the-board rises during the first eight months of 2021.

The Dow Industrials in August rose 1.2%. For 2021 through the end of August, they tacked on 15.5%.

The S&P 500 moved up 2.9% in August and 20.4% from the first of the year through the end of the month.

And the Nasdaq Composite jumped 4% in August and 18.4% in the first eight months of 2021.

Offsetting optimism will be the uncertainty about when the Federal Reserve might start lifting interest rates, the so-called tapering process.

And there is the continuing concern regarding the coronavirus and its damage to the economy.

TheStreet Recommends

Investors on Wednesday are parsing a number of economic reports.

The ADP National Employment report showed a gain of 374,000 jobs in August. Economists surveyed by Dow Jones had expected the report to show the addition of 600,000 private sector jobs in August, CNBC reported.

This report will be followed by the nonfarm payroll employment report on Friday. Economists are forecasting that 750,000 jobs were created in August.

And the Institute for Supply Management’s gauge of manufacturing sector activity is expected to have moderated to 58.6 in August from 59.5 in the previous month, Reuters reported.

The Mortgage Bankers Association’s index of mortgage applications for the week through Aug. 27 fell 2.4% from a week earlier, Reuters reported. That figure reflected a 3.8% drop in applications to refinance existing loans.

The average interest rate in contracts for traditional 30-year mortgages remained 3.03%. Purchase applications rose 0.6% to the highest level since early July, the MBA said, according to the report.

Among major stocks this morning, Campbell Soup  (CPB) - Get Campbell Soup Company Report was recently almost 1% higher. The foods giant reported that fiscal fourth-quarter net income more than tripled and adjusted earnings beat Wall Street's estimates.

The company also authorized a $500 million share buyback on top of the $250 million buyback plan it unveiled in the third quarter.