VSCO - US Stock Rally Could Cool As Focus Shifts To Q2 GDP Private Jobs Data: Why This Analyst Says September Won't See Late-Summer's Weakness | Benzinga
Trading in the futures market suggests a pause in the rally as stocks come into Wednesday’s session with a three-session winning streak intact. The tech space could come under selling pressure from earnings-related sell-offs from companies such as HP, Inc. (NYSE:HPQ). The spotlight continues to shine on Main Street readings, with the focus shifting to the results of ADP’s private payrolls report and the preliminary second-quarter GDP data.
Cues From Tuesday's Trading:
Bad news on the economy was digested as good news by the market on Tuesday, as traders bid up stocks on hopes of a rate pause. The Labor Department's monthly “Job Openings and Labor Turnover” survey showed that job openings fell to the lowest level in over two years.
The Conference Board's consumer confidence index fell by much more than expected in August, reflecting a setback to consumer mood. Bond yields pulled back in reaction to the data, reflecting tempered rate-hike expectations.
The averages opened lower but reversed course in early trading as the economic reports dropped in. After a sharp spike through the early afternoon trading, the indices closed notably higher for the session.
The Nasdaq Composite and the S&P 500 indices ended at their highest levels since early August, while the Dow Industrials settled at a two-week high.
The market witnessed across-the-board strength, led by communication services, IT, and consumer discretionary stocks.
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