Markets closed up on Wall Street today: Dow +0.25%, S&P +0.59%, Nasdaq +0.81%, Oil -2.10%, Gold +1.22%.
Don’t Miss: A Look At U.S. Economic Data Scaring Investors.
Today’s markets were up because:
1) Job cuts. Markets took a beating this morning after it was announced that planned job cuts in the U.S. climbed 59% year-over-year in July, and 60% over June’s figures. Projections have Friday’s Labor Department report on the state of job growth in the U.S. showing 85,000 more payrolls in June, a figure only good enough to maintain June’s 9.2% rate of unemployment. If the number reported Friday falls short of expectations, population growth may again exceed job growth, and the rate of unemployment could rise.
2) ISM service-sector report. Monday’s ISM manufacturing report contributed to market losses on Monday, but today’s report, though equally negative, didn’t quite have the same effect as markets began to level out this afternoon. The ISM service-sector index declined to 52.7% in July. The U.S. service sector accounts for three-fourths of all economic activity, and employs four out of every five U.S. workers, so a 0.5% decline speaks volumes about the state of economic recovery. However, ultimately the news seems to have had little effect on the already depressed markets, which began to rally in the afternoon to finish the day with gains.
3) Tech. All three major indices closed the day up, in large part thanks to tech stocks. Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Intel (NASDAQ:INTC), IBM (NYSE:IBM), and Microsoft (NASDAQ:MSFT) led tech gains today, with Intel one of the Dow’s best performers, helping push the index positive in the last hour of trading so that, despite a negative economic outlook, the markets finally got their day in the sun after the shadow of the debt ceiling finally passed.