U.S. Market Advanced Despite Mixed News Reports

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Current Futures: Dow +50.00, S&P +6.70, NASDAQ +10.00

Wednesday’s calendar had a strong influence on the U.S. cash market, helping it to erase the declines seen just one day previously. 

Three major economic reports had a lot of weight on the market’s sentiment on Wednesday. The first to hit the wires was the ADP Non-Farm payroll, which showed that private companies shed 473K jobs in the U.S. The actual number was much worse than the forecasted one, -473K vs. -388K, but the number from the previous month, in May, was revised higher by 47K, something that helped the U.S. futures surge by almost 1%. TheLFB-Forex.com Trade Team noted that overall the release points to a very weak labor market

Later in the day, around 10am EDT, the ISM Manufacturing and the Pending Home sales reports hit the wires. The ISM report showed that the manufacturing side of the economy is still in a contraction phase, but the rate of contraction had slowed down remarkably from the previous few months. At the same time, pending home sales came in at just 0.1%, even though the market expected a 0.7% read. The two releases, together with the reports seen over the last period, suggest that the economy is still struggling to show some signs of growth, even though some improvements have been made, TheLFB-Forex.com Trade Team added. Moreover, shortly after the 10am EDT releases, the equity market retraced some of the ground recently gained. 

For now, the major U.S. indexes are up roughly 1%, still trading within the range of the last few days. In addition, the falling volatility observed lately might suggest that the range-bound trading will continue for some time ahead, TheLFB-Forex.com Trade Team commented. Most U.S. sectors posted rather modest gains on Wednesday, but the consumer staples sector jumped as much as 2%, being the best performing industry so far. 

The Dow Jones Index gained 78.75 points (0.93%) to 8,525.75, while the S&P 500 index added 6.87 points (0.75%) to 926.19.

Crude oil for July delivery was recently trading at $68.60 per barrel, lower by $1.10. Crude oil declined on Wednesday for a second consecutive day, but so far, it seems to have found a strong support area in the $68 range.
 
Gold for July delivery was recently trading up by $14.50 to $940.20. Gold had a strong trading session on Wednesday, but for now, it topped out near the 50-day moving average. 

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