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Stocks seemed ready to close an ugly month on a positive note, putting October losses in the rearview mirror as buying momentum continued after Tuesday 's sharp rises.
Facebook's gains in pre-marketing actions come after the release of its quarterly report and may in part be causing a change in mood, but investors are still uncertain whether a change of feeling announced a more permanent attitude adjustment.
How are the benchmarks?
Futures for the Dow Jones Industrial Average
YMZ8, + 0.60%
were up 151 points, or 0.6%, to 25,007 points, those in the S & P 500 index
ESZ8, + 0.68%
rose by 18.70 points to 2,704.25, up 0.7%. Meanwhile, Nasdaq-100 futures
NQZ8, + 1.10%
rose 76 points, or 1.1%, to 6,891.75.
Tuesday, the Dow
DJIA, + 1.77%
increased by 431.72 points, or 1.8%, to 24,874.64; the S & P 500 index
SPX, + 1.57%
earned 41.38 points, or 1.6%, at 2,682.63; and the Nasdaq composite index
COMP + 1.58%
rose 111.36 points, or 1.6%, to 7,161.65.
For the month, the Dow will lose 6%, the S & P 500 should end the period at 7.9%, while the Nasdaq should end in October with a decline of 11%.
What motivates the market?
Facebook's quarterly results may have reinforced the stock market's optimism after the social media giant released a report that was not as scary as Wall Street feared. This is remarkable because the names FAANG, referring to the acronym technology and Internet-related actions, of which Facebook is a member, have been at the heart of stock gains over the last 18 months. Other members of the group include Amazon.com Inc., Netflix, and Google-parent Alphabet, all of whom have seen their equities softened in recent weeks due to doubts about the ability of these companies to consistently generate growth in earnings. benefits, while managing user security. .
In addition, the global stock markets were also well positioned to generate gains, sign of a pivot in a risk management mode that had gripped much of the world of investors over the course of a month. October 1993 volatile left the Nasdaq in correction territory, defined as a fall of at least 10%. Recently, in 2018, the points Dow and S & P 500 flirts with correction.
Fears of trade wars, a Federal Reserve misstep as the central bank tries to normalize monetary policy after the crises and worries about the contraction of growth outside the United States have been key elements of the crisis. erosion of investor confidence.
At the same time, the Bank of Japan kept its monetary policy extremely flexible as concern grew over the impact of trade tensions between the United States and China on the Japanese economy, while cautioning against the harmful effects of protectionism and the UK's efforts to emerge from the crisis. the European Union on global markets and economies.
In addition, manufacturing and services PMI data for the month of October show the slowest growth in activity for more than two years, reaching 50.2 in September, compared with 50.8 in September, according to data released Wednesday by the National Bureau of Statistics. A reading of at least 50 indicates an improvement in the conditions. The report provides further evidence of the slowdown in the world's second-largest economy.
What data was under discussion?
At 8:15 am Eastern Time, investors will receive a reading of the employment situation in the private sector in October, before the release of a key labor market report. Friday. Last month, automatic data processing indicated that 230,000 jobs were created in September.
Shortly after this report, the third quarter labor cost index figures are expected at 8:30 am, with a forecast gain of 0.7%, according to the average economists surveyed by MarketWatch. At the same time, a repayment report from the Treasury Department is due.
At 9:45 am, a reading of the PMI from the Chicago area is planned.
What did the analysts say?
"This rebound may well adjust to an end-of-month position being adjusted, but there have been indications over the last few days that we could start seeing a somewhat short-term basis." , with most of the bad news already announced to some extent, "wrote Michael Hewson, chief analyst at CMC Markets UK, in a research note on Wednesday.
What stocks were under discussion?
Actions of Facebook Inc.
FB + 2.91%
increased by more than 3% in pre-commercial trade
Actions of Clorox Co.
CLX, + 2.70%
fell nearly 5% after posting quarterly results that failed to impress investors.
Estée Lauder Cos.Stock of
EL + 3.76%
Following the approval of a buyback and the rise in its quarterly dividend, its pre-market share increased by approximately 2.9%.
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