Inventories rise as investors weigh on prospects for a rate cut

US stocks rose after Federal Reserve officials declared that they would be willing to take steps to help preserve economic expansion in the face of escalating global trade tensions.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "However, earnings were capped earlier in the session after a & nbsp;new employment report& nbsp; reflects the slowest pace of staffing gains in the private sector since 2010. "data-reactid =" 16 "> However, earnings were capped earlier in the session after a new report on the company. employment reflects the slowest pace of private sector staffing gains since 2010.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) increased by 0.8%, or 22.49 points, at the close of the market. The Dow (DJI) increased by 0.8%, or 202.22 points, while the Nasdaq (^ IXIC) increased by 0.64%, or 48.36 points. "data-reactid =" 17 "> The S & P 500 Index (^ GSPC) rose 0.8%, or 22.49 points, at the close of the market. The Dow (^ DJI) rose 0.8% or 202.22 points, while the Nasdaq (^ IXIC) rose 0.64%, or 48.36 points.

Treasury yields recovered slightly from earlier in the morning, with a yield of less than 1 basis point over 10 years, at 2.1123% Wednesday afternoon. The 2-year yield fell 2.6 basis points but rebounded after falling below 1.80%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wednesday morning, & nbsp;ADP Research Institute and Moody's Analytics reported& nbsp; that the US economy has added only 27,000 private jobs in May, less than the 185,000 expected consensus economists. "Data-reactid =" 19 "> On Wednesday morning, ADP Research Institute and Moody's Analytics reported that the US economy had added 27,000 private May jobs, below the expected 185,000 consensus economists.

Although the ADP / Moody report is not a perfect indicator of the Bureau of Labor Statistics' monthly job posting, Wednesday's disappointing results prompted market experts to moderate their expectations for non-farm wage gains. reflected in the BLS publication of Friday.

"The alarming increase of 27,000 in ADP's measure of private paid employment in May reflects the recent deterioration of survey-based activity indices, including employment indices," writes a notes Paul Ashworth, chief economist at Capital Economics. For Friday's report, "It is clear that the balance of risks of this estimate is firmly downward," he added.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile, the Fed has released its & nbsp;Beige book& nbsp; Tuesday afternoon, containing anecdotes detailing the economic conditions in each district of the Federal Reserve. The & nbsp;suggested anthology& nbsp; a "slight improvement over the previous period" in April and May in the 12 districts in terms of growth. It reflected information gathered up to May 24, reflecting the period that was covering the latest escalation with China but not the latest announcement by President Donald Trump to impose new tariffs in Mexico. "Data-reactid =" 22 "> The Fed released its beige book Tuesday afternoon, containing anecdotes detailing the economic conditions in each of the Federal Reserve's districts.This anthology suggested a" slight improvement over the previous period in April and May in the 12 districts in terms of growth until May 24, taking into account the period that covered the latest rise in tensions with China but not the latest announcement by President Donald Trump Impose new tariffs in Mexico.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Beige Book was written as a result of remarks by & nbsp;Jerome Powell, Fed Chairman, Wednesday& nbsp; that the central bank "was closely watching the consequences" of trade disputes for the economic outlook in the United States. "As always, we will do the right thing to support the expansion," he said. The Federal Reserve's governor, Lael Brainard, reiterated this feeling in a & nbsp;interview with Brian Cheung Wednesday Yahoo Finance."data-reactid =" 23 "> The beige book was published following the intervention of Jerome Powell, chairman of the Fed, who said Wednesday that the central bank" closely watched the consequences "of disputes for the US economic outlook. " As always, we will act appropriately Federal Reserve Governor Lael Brainard reiterated this sentiment in an interview with Yahoo Finance's Brian Cheung on Wednesday.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[More:[More:[Plus:[More:The Fed's efforts to ensure that the roof does not run out raise questions]"data-reactid =" 24 ">[More:[More:[Plus:[More:The Fed's efforts to ensure that the roof does not run out raise questions]

Although Powell has not explicitly defined the direction of future monetary policy, its focus away from rhetoric signaling a "patient" attitude has been interpreted as an indication of an upcoming Fed rate cut.

"Jay Powell could hardly have expressed his message more clearly, even though doves had been released as he was heading for the podium," Societe Generale's macroeconomic strategist Kit Juckes wrote on Wednesday.

On Wednesday morning, the markets were expecting a 25.8% rate cut at the June Fed meeting and a probability of at least a 98.3% rate cut from the Fed. here the end of 2019.

Commercial tensions

The Fed and other market watchers did not miss any trade-related surveillance actions as tensions continued to intensify between the United States, China and, more recently, the US. Mexico.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wednesday, the State Administration Chinese market regulator has been fined Ford (F) $ 23.6 million for antitrust violation. The country's market regulator hit Ford with the fine for setting a floor on the resale prices of vehicles in the city of Chongqing, & nbsp;according to a statement."data-reactid =" 30 "> On Wednesday, the Chinese State Market Administration sentenced Ford's main joint venture (F) to a $ 23.6 million fine for The Chinese market regulator has condemned Ford for setting a floor for the resale price of vehicles in the city of Chongqing, according to a statement.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The move adds another action of China to an action against American Company in a context of deteriorating trade negotiations, a few days earlier, & nbsp;China said it was investigating FedEx (FDX) after Huawei Technologies declared that the shipping company had diverted packages intended to reach its offices in China. China also said that it & nbsp;create a list of "unreliable" entities& nbsp; it believes that it would hurt the interests of domestic companies, which could have an impact on several large US companies. "data-reactid =" 42 "> This measure adds a new action of China to a US company in a deteriorating trading environment A few days ago, China had announced that it was investigating FedEx (FDX) after Huawei Technologies announced that the transportation company had diverted packages destined for its offices in China, but that it would create a list of "unreliable" entities that it said would damage the interests of the companies. which could affect an assortment of large US companies.

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