U.S. stocks fluctuated on June 4, as global market participants responded to mixed economic data and speculation surrounding an upcoming European Central Bank meeting.
Investors who want to make money by trading equities could make more-informed decisions if they are aware of the price movements these securities experienced on June 4. In addition, these individuals might benefit from knowing about the major economic developments that were happening at the time.
Stock volatility
By 11:18 a.m. in New York, the S&P 500 Index was 0.1 percent higher at 1,925.48, according to Bloomberg. The Nasdaq Composite Index had also climbed at the time, rising 0.2 percent. The Dow Jones Industrial Average was lower for the day, having fallen 0.1 percent to 16,714.
By 2:17 p.m. Eastern time, the S&P 500 had extended its gains, rising to 1,927, The Associated Press reported. The Dow had also moved higher, reaching 16,730.
Key role of job market
Investors across the world have been scrutinising the job market of the world’s largest economy. Many individuals involved in stock trading have identified the unemployment rate as being as a key economic indicator.
Amid this situation, ADP Research Institute announced on June 4 that American employers created a net 179,000 jobs in May. This organization, which is based in Ridgeland, New Jersey, calculated these figures using payrolls data.
This number fell short of the 210,000 positions predicted by economists taking part in a Bloomberg poll. Now, market participants will be looking to the monthly figures that the U.S. Department of Labor is scheduled to release on Friday, June 6. Market experts participating in a separate survey conducted by the media outlet forecast that in May, private payrolls rose by 210,000.
Doug Cote, chief market strategist for Voya Investment Management, commented on the situation in a note to investors, according to the AP. He stated that, while most economic data provided in the U.S. has been positive lately, the ADP report does not fit in with that trend.
ISM non-manufacturing data robust
Market participants have certainly had some positive data to lean on recently, as the Institute for Supply Management’s non-manufacturing index rose to 56.3 in May from 55.2 in April.
This figure surpassed the median forecast of 55.5 provided by economists taking part in a Bloomberg poll. The market experts who participated in the survey provided estimates ranging from 54 to 58.
Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee, noted that May had the highest reading since August 2013.
Investors have been monitoring the strength of U.S. economic reports since they can potentially help grant some insight into the pace the Federal Reserve will use when tapering its stimulus. The financial institution has thus far announced several rounds of reductions to these bond purchases.
Patrick Spencer, London-based head of equity sales at Robert W. Baird & Co., commented on the situation, according to Bloomberg.
“The economy is in a good position where it’s not so buoyant that the Fed has got to withdraw its support quickly, and not so weak that they have to worry about further weakening,” he told the news source.
Many market participants voiced their concerns that tapering stimulus could provide the global equity markets with some serious headwinds. This stimulus has contributed to the global money supply increasing, putting more wealth in the hands of investors across the world.
Importance of ECB policy
Speaking of economic stimulus, many market participants will be watching the European Central Bank to see what policy decisions it announces on Thursday, June 5, the AP reported.
Many believe that the financial institution will reduce its interest rates in an effort to jumpstart economic growth in the region, according to the news source. In recent years, the euro zone’s expansion has been slower than that of the U.S.
If the financial institution decides to push its benchmark borrowing costs higher, this could potentially undermine economic growth in the region.
Walter Todd, who manages around $980 million as chief investment officer at Greenwood Capital Associates LLC, commented on the key role of the Labor Department and ECB decisions, according to Bloomberg.
“People are pretty much in wait-and-see mode ahead of the ECB and the payroll number,” he told the news source. “If we don’t get the action people are expecting out of the ECB tomorrow, that could be a pretty negative catalyst.”
Bob Doll, chief equity strategist at Nuveen Investments, also weighed in on the matter, according to the AP.
“The ECB has conditioned the market to expect ‘good things,’” he told the news source.
U.S. stocks fluctuated on June 4, as global market participants responded to mixed economic data and speculation surrounding an upcoming European Central Bank meeting.
Investors who want to make money by trading equities could make more-informed decisions if they are aware of the price movements these securities experienced on June 4. In addition, these individuals might benefit from knowing about the major economic developments that were happening at the time.
Stock volatility
By 11:18 a.m. in New York, the S&P 500 Index was 0.1 percent higher at 1,925.48, according to Bloomberg. The Nasdaq Composite Index had also climbed at the time, rising 0.2 percent. The Dow Jones Industrial Average was lower for the day, having fallen 0.1 percent to 16,714.
By 2:17 p.m. Eastern time, the S&P 500 had extended its gains, rising to 1,927, The Associated Press reported. The Dow had also moved higher, reaching 16,730.
Key role of job market
Investors across the world have been scrutinising the job market of the world’s largest economy. Many individuals involved in stock trading have identified the unemployment rate as being as a key economic indicator.
Amid this situation, ADP Research Institute announced on June 4 that American employers created a net 179,000 jobs in May. This organization, which is based in Ridgeland, New Jersey, calculated these figures using payrolls data.
This number fell short of the 210,000 positions predicted by economists taking part in a Bloomberg poll. Now, market participants will be looking to the monthly figures that the U.S. Department of Labor is scheduled to release on Friday, June 6. Market experts participating in a separate survey conducted by the media outlet forecast that in May, private payrolls rose by 210,000.
Doug Cote, chief market strategist for Voya Investment Management, commented on the situation in a note to investors, according to the AP. He stated that, while most economic data provided in the U.S. has been positive lately, the ADP report does not fit in with that trend.
ISM non-manufacturing data robust
Market participants have certainly had some positive data to lean on recently, as the Institute for Supply Management’s non-manufacturing index rose to 56.3 in May from 55.2 in April.
This figure surpassed the median forecast of 55.5 provided by economists taking part in a Bloomberg poll. The market experts who participated in the survey provided estimates ranging from 54 to 58.
Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee, noted that May had the highest reading since August 2013.
Investors have been monitoring the strength of U.S. economic reports since they can potentially help grant some insight into the pace the Federal Reserve will use when tapering its stimulus. The financial institution has thus far announced several rounds of reductions to these bond purchases.
Patrick Spencer, London-based head of equity sales at Robert W. Baird & Co., commented on the situation, according to Bloomberg.
“The economy is in a good position where it’s not so buoyant that the Fed has got to withdraw its support quickly, and not so weak that they have to worry about further weakening,” he told the news source.
Many market participants voiced their concerns that tapering stimulus could provide the global equity markets with some serious headwinds. This stimulus has contributed to the global money supply increasing, putting more wealth in the hands of investors across the world.
Importance of ECB policy
Speaking of economic stimulus, many market participants will be watching the European Central Bank to see what policy decisions it announces on Thursday, June 5, the AP reported.
Many believe that the financial institution will reduce its interest rates in an effort to jumpstart economic growth in the region, according to the news source. In recent years, the euro zone’s expansion has been slower than that of the U.S.
If the financial institution decides to push its benchmark borrowing costs higher, this could potentially undermine economic growth in the region.
Walter Todd, who manages around $980 million as chief investment officer at Greenwood Capital Associates LLC, commented on the key role of the Labor Department and ECB decisions, according to Bloomberg.
“People are pretty much in wait-and-see mode ahead of the ECB and the payroll number,” he told the news source. “If we don’t get the action people are expecting out of the ECB tomorrow, that could be a pretty negative catalyst.”
Bob Doll, chief equity strategist at Nuveen Investments, also weighed in on the matter, according to the AP.
“The ECB has conditioned the market to expect ‘good things,’” he told the news source.
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