The five biggest gainers on the Dow Jones Industrial Average Wednesday were largely economically-sensitive stocks, as the market driver of the day — a powerful one — shows the speedy economic recovery is potentially still intact.
All sectors, including growth and value-oriented companies, rose with the three major U.S. indices up more than 1% each. The 10-Year Treasury yield rose to 0.70% from 0.65% as inflation expectations of late have risen incrementally, which is highly supportive of cyclical stocks.
The Dow — even with its recent biotech and technology additions — is still highly representative of the “old economy” of manufacturing, banking, and consumer sectors. It rose almost 2% by 2 PM EDT, outpacing the other indices’ gains of less than 1.7%.
The tailwind Wednesday: ADP said the U.S. added a net 749,000 jobs in the month of September, against estimates of 600,000. Friday’s Bureau of Labor Statistics jobs report will be more telling, but for now, the magnitude of the beat, coupled with strong economic data in the past few days, is convincing investors the economic — and therefore earnings — recovery is still looking strong.
Here were the five biggest gainers on the Dow by 2 PM:
The only two stocks here that are fairly defensive are Walmart and United Health, although Walmart can sometimes see some incremental top-line benefit from a stronger consumer.