More weak economic data this morning, namely the disappointing ISM non-manufacturing number, sent stocks tumbling once again in early trading. Bond yields also tumbled with the 10 year Treasury note yield falling all the way to 1.53%. But, after a more than 300 point drop in the Dow, buyers appeared and stocks worked their way all the way back into positive territory during the afternoon portion of the trading session. What caused the reversal? That’s a good question. Sentiment was extremely negative right before the stocks began to rise.
Anyway, for the day the Dow Jones Industrial Average was up 123 points to close at 26,202. The S&P 500 was up 23 points to finish the day at 2,910. Gold was up $4 to trade at $1,512 per ounce, while oil was down $.35 to trade at $52.29 per barrel WTI.
On the earnings front, consumer staple Pepsi had a wonderful earnings report that helped boost its shares to near all-time highs. But, earnings season will be in full force over the next few weeks, and we are likely to get a mixed picture. We have the all-important non-farm payroll number tomorrow with estimates that 147,000 new jobs were created in September. Let’s see how the week finishes out tomorrow.
Have a nice evening everyone.