MARKET SNAPSHOT: S&P 500 Reclaims 2,100 As Investors Await Yellen, Jobs Report
01 December 2015 - 9:05PM
Dow Jones News
By Joseph Adinolfi and Sara Sjolin, MarketWatch
Stocks shake off weak manufacturing gauge
The S&P 500 broke above 2,100 for the first time since early
November Tuesday as investors shook off a weak reading on U.S.
manufacturing activity and pushed stocks higher with less than a
half-hour left in the trading day.
The S&P 500 index was up 19.81 points on the day, or 1%, to
2,100.19.
The Dow Jones Industrial Average was up 146.85 points, or 0.8%,
to 17,866.91 in recent trading, while the Nasdaq Composite rose
41.52 points, or 0.8%, to 5,150.60.
Investors remained optimistic about the November jobs report,
set to be released Friday, despite a weak reading from Institute
for Supply Management's manufacturing index, which fell to 48.6%
(http://www.marketwatch.com/story/ism-manufacturing-index-drops-to-lowest-level-since-mid-2009-2015-12-01)
in November, its weakest reading since mid-2009.
The jobs report is widely considered the last major piece of
data that could influence the Fed's decision about whether or not
to lift rates.
JJ Kinahan, chief derivatives strategist at TD Ameritrade,
called the ISM number "a disaster," but said that it probably won't
dissuade Federal Reserve policy makers from raising interest rates
at their policy meeting later this month.
"It doesn't impact our expectations for the Fed at all, but it
does perhaps impact the strength we saw earlier today," Kinahan
said. "It wasn't quite the strong number we expected."
Yellen is scheduled to speak publicly three times in the next
two days. Investors will be listening closely for signs that a
December interest-rate hike remains a strong possibility, market
strategists said.
Also read: Fed may need 4% unemployment rate to hit inflation
goal
(http://www.marketwatch.com/story/fed-may-need-4-unemployment-rate-to-hit-inflation-goal-2015-11-30)
Data: Aside from the ISM report, the U.S. economic data released
Tuesday was relatively robust.
Construction spending jumped a seasonally adjusted 1% in
October, beating the expectations of economists polled by
MarketWatch
(http://www.marketwatch.com/story/construction-spending-rises-10-in-october-2015-12-01-1091510).
Meanwhile, U.S. auto sales posted modest monthly gains
(http://www.marketwatch.com/story/us-nov-car-sales-buoyed-by-black-friday-deals-2015-12-01).
Fed speakers:Chicago Fed President Charles Evans
(http://www.marketwatch.com/story/feds-evans-says-december-interest-rate-hike-could-be-a-mistake-2015-12-01)
said that a December interest-rate hike could be a mistake. Stocks
were little-changed after the remarks because Evans' views were
already well-known to investors.
At 8 p.m. Eastern, Fed Gov. Lael Brainard will talk about the
"Lower Neutral Rate and its implications for Monetary Policy" at
Stanford Institute for Economic Policy Research Associates Meeting
in Stanford, Calif.
Movers and shakers: Shares of instruments and
microwave-components maker Giga-Tronics Inc
(http://www.marketwatch.com/story/giga-tronics-stock-more-than-doubles-after-software-licensing-deal-2015-12-01).(GIGA)
more than doubled after the company announced a software-licensing
deal with Lockheed Martin Corp.
Shares of Amazon.com(AMZN) rose 2.2% after the online retailer
said the Black Friday period marked a record weekend for sales of
its own devices
(http://www.marketwatch.com/story/amazon-crushes-black-friday-weekend-with-record-sales-of-its-own-devices-2015-12-01).
Infoblox Inc.(BLOX) shares rose 22.3% after the network software
company late Monday reported earnings that topped analyst
expectations
(http://www.marketwatch.com/story/infoblox-shares-rally-on-earnings-outlook-buyback-plan-2015-11-30).
Shares of HF Financial Corp.(HFFC) surged 18.7% on reports that
Great Western Bancorp Inc.(GWB) intends to buy the company for
$139.4 million.
Other markets: Asian stock markets closed broadly higher
(http://www.marketwatch.com/story/asian-shares-rise-on-hopes-for-stimulus-yuan-holds-steady-2015-12-01)
after a flurry of weak PMIs lifted hopes for more monetary
easing.
European equities
(http://www.marketwatch.com/story/european-stocks-trim-gains-as-ecb-meeting-looms-2015-12-01)
closed lower as investors were reluctant to take any major
positions ahead of the ECB meeting on Thursday. Economists widely
expect the central bank to extend its quantitative easing program
and possibly move the deposit rate further into negative
territory.
Crude oil futures turned lower after briefly trading above $42
(http://www.marketwatch.com/story/oil-prices-rise-as-opec-meeting-draws-closer-2015-12-01)
a barrel as the meeting of the Organization of the Petroleum
Exporting Countries meeting this Friday in Vienna drew closer.
Gold edged higher, while the dollar slipped against most major
currencies
(http://www.marketwatch.com/story/yen-gains-on-reports-of-currency-hedging-by-japans-mega-pension-fund-2015-12-01).
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(END) Dow Jones Newswires
December 01, 2015 15:50 ET (20:50 GMT)
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