Mid-Day Update: Positive ADP Jobs numbers sparks broad market rally
Markets are trying to hold onto gains for a second straight session after soaring on strong jobs data from ADP and improving jobless claims numbers, as both data points suggest the US economy could be exiting a recent soft patch. Private-sector jobs in the U.S. rose by 157,000 last month, according to giant Automatic Data Processing (ADP), while new claims for unemployment benefits dropped by 14,000 to a seasonally adjusted 418,000 in the week ended July 2. The decline was bigger than the 3,000 forecast by economists.
The news sent the SPDR S&P 500 ETF (NYSE:SPY), the US dollar and crude oil rallying to pre-market highs, before minor profit-taking at the open. Currently the SPDR S&P 500 ETF (NYSE:SPY) is up 1%, while the PowerShares QQQ Trust (NASDAQ:QQQ) has gained 1.25% on the session.
Retail stocks via the SPDR S&P Retail ETF (NYSE:XRT) are providing leadership on the strength of same store sales numbers for what seems to be a broad market rally. Urban Outfitters (URBN) is up nearly 7% on a Morgan Stanley (NYSE:MS) upgrade, while Kohl’s (NYSE:KSS) and Target (NYSE:TGT) are both seeing gains over 6% on the session.
The semi stocks via the Semiconductors HOLDRs ETF (NYSE:SMH) as a group, are also leading the market with laggards Cree (NASDAQ:CREE) and KLA-Tencor (NASDAQ:KLAC), both up 5%, pacing the group. Western Digital (NYSE:WDC) up 2.5%, provided an early catalyst for semis after a pre-market JP Morgan Chase (NYSE:JPM) upgrade.
The usual suspects in technology remain strong with Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) all up over a percent. Even the banks have provided a lift from the bottom, with Wells Fargo (NYSE:WFC), JP Morgan Chase (NYSE:JPM) and Citigroup (NYSE:C) all up over 2% on the day.
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