Markets held their gains Wednesday in New York,?after data that supports the rally rolled in. First a better-than-expected number of private payrolls were added to the economy in November, according to ADP. The Chicago ISM PMI index, which measures manufacturing in the industry-heavy region, jumped above economists�� expectations in November. And finally, the National Association of Realtors released their pending home sales index for October, showing a surge in pending sales way over analysts�� expectations for the month.
The data followed news earlier Wednesday morning about the U.S. Federal Reserve and a group of global central banks move to ease liquidity in Europe by lowering the price of dollar swaps. The Dow Jones industrial average closed up 4.2% to 12.045, the S&P 500 gained 4.3% to clear the 1,200 hurdle to 1,246 and the Nasdaq gained 4.2%, rising to 2,620.
Chicago PMI grew to 62.6 in November, up from 58.4 in October, and above the 58.5 reading that economists were expecting. Production grew to 67.3 in the index from 63.4 the month before, and new orders grew to 70.2 from 61.3.
In October pending home sales surged 10.4% from September and 9.2% over its year-ago level. ?Economists were expecting growth of only 2%.
ADP��s National Employment Report, which normally preceeds the Labor Department��s monthly Employment Situation Survey, showed that 206,000 jobs were added to the private sector in November, coming in above the 130,000 that economists were expecting. The firm also revised up the October jobs to 130,000 added, up from 110,000. The gain in November was the largest monthly advance since last December.
Many warn against using the ADP data as way to revise estimates for the government��s monthly jobs report, because it has not traditionally been a consistent guide in predicting the official numbers. Nomura said Wednesday that it will keep its estimate for the gove! rnment r eport steady at 150,000 jobs added, even after ADP��s data surprise.
��Job growth among private industries has recovered since August, reflecting slow but steady growth,�� said Nomura analyst Ellen Zentner in a note to analysts Wednesday. Retailer reports of a strong start to the holiday shopping season point to better labor market conditions, however she will wait to see the Labor Department��s report.
The data does jive with a separate report from outplacement firm Challenger, Gray & Christmas that shows November job cuts were down 13% from the same month a year ago, at 42,474 job cuts this year.
No comments:
Post a Comment