Volatility continued today as stocks gyrated back and forth between positive and negative territory. Each economic data point and every syllable uttered by a Fed official seemed to send stocks one way or another. On the economic front, ADP estimated that private payrolls will rise by 175,000 in January which was slightly above consensus (still not real good), but not a market mover. The ISM non-manufacturing index on the surface looked like a good report (stocks rallied), but as the onion was peeled back, monthly growth for new orders was disappointing (stocks fell).
By the close, the Dow Jones Industrial Average was down 5 points to finish the day at 15,440. The S&P 500 was down 3 to close at 1751. Gold was up $6 to trade at $1257 per ounce, while oil was up $.08 to trade at $97.27 per barrel WTI.
Once again, we are focused on the non-farm payroll report which we will receive on Friday. This is beginning to look a lot more like 2011 in terms of volatility, not only day to day, but inter-day. When traders begin to get jittery, and they have, every little piece of information is magnified and reactions can be quick and sharp. Let’s see how the rest of the week goes.
Have a nice evening everyone.