12:30pm (EST)
There was a flood of economic data and European news before the bell which led to a lower open but the market is mixed heading into the second half of trading as the bulls continue to push resistance. Much of the news has favored the bears but the bulls seem determined to end the session higher.
The parade started with the ADP Employment Change Report which showed private sector payrolls added 176,000 in June. This was well ahead of expectations for a print of 100,000 and May’s numbers were revised upwards from a previous gain of 133,000 to 136,000.
Initial Claims fell 14,000 to 374,000 which were better than the expected 386,000 penciled-in by the suit-and-ties. However, claims from 2 weeks ago were revised upwards to 388,000 versus the original reading of 386,000. Continuing Claims increased 4,000 to 3.31 million.
Elsewhere, the ISM Services Index dropped to 52.1% in June from 53.7% in May. Wall Street was looking for a number north of 52.9% but anything over 50% still indicates expansion so traders took it as bullish.
The European Central Bank (ECB) cut its lending rate by a quarter-point to a record low 0.75%. However, head honcho, Mario Draghi warned further downside risks remain for growth which spooked the European markets and pushed the euro lower. We are watching the currency markets closely.
We have some additional thoughts on what to expect from the market on Friday and next week. Nonfarm Private Payrolls, the Unemployment Rate, Hourly Earnings and Average Work, are all due out at 8:30am (EST) tomorrow so expect volatility.
As we head to press, the Dow is down 10 points to 12,933 while the S&P 500 is off 3 points to 1,371. The Nasdaq is higher by 5 points to 2,981.
