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MARKET REVIEW. The New York Stock Exchange finished in the green on Wednesday, ignoring an indicator that revealed a sharp slowdown in private sector job creation in the United States in July.
The clues
In Toronto, the S&P/TSX rose 133 points, or 0.82%, to 16,501 points.
The composite index S&P 500 increased 21 points, or 0.64%, to 3,327 points.
The Dow Jones, Wall Street’s flagship index, gained 373 points, or 1.39%, to 27,201 points.
The Nasdaq, with a strong technological coloring, appreciated by 57 points, or 0.52%, to 10,998 points.
The Canadian dollar advanced 0.50% to US $ 0.7539.
Oil gained US $ 0.46, or 1.10%, to US $ 42.16.
Gold soared US $ 33.10, or 1.65%, to US $ 2,034.30.
The context
The US private sector created 167,000 jobs last month, a pace slowed by the closings of shops and restaurants in a large part of the country, where cases of coronavirus are on the rise, according to the investigation of the service firm to ADP companies.
Analysts were predicting 1.6 million new jobs.
“Investors believe that the ADP survey has not been a particularly useful indicator in recent months to anticipate monthly figures from the Bureau of Labor Statistics (BLS),” notes Sam Stovall, chief investment officer at CFRA Research .
The BLS, an organ of the Department of Labor, is due to release a much-awaited report on employment and the unemployment rate in July on Friday.
US President Donald Trump announced Wednesday on Fox News that the document would contain “big numbers” without specifying what it could mean.
Among other Wednesday indicators, activity in services in the United States rebounded more strongly than expected in July according to the index of the professional association ISM.
US trade deficit narrowed 7.5% in June, according to Commerce Department data
On the health front, the US government on Wednesday announced a new investment of $ 1 billion in the Covid-19 vaccine project of the pharmaceutical company Johnson & Johnson (J&J), with at least 100 million doses guaranteed to the key.
The title of J&J rose 0.80% on Wall Street.
The New York place was also carried by the jump in the action of Disney (+ 8.80%), which published its quarterly results Tuesday at the end of the day.
Despite a heavy net loss in the third quarter of its staggered fiscal year, the entertainment empire was able to count on a considerable increase in the number of paying subscribers on its various streaming platforms (Disney +, ESPN + and Hulu), this one amounting to 100 million.
Market players have also continued to follow parliamentary discussions around new fiscal stimulus measures, with Republicans and Democrats still looking for a compromise.
“Investors realize that as this support plan is struggling to be voted, it will probably be the last,” said Mr. Stovall.
On the bond market, the rate on US 10-year debt rose to 0.5494% around 4:20 p.m. against 0.5069% on Tuesday evening.
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