Wednesday, August 4, 2010
Stock Market Commentary:
The major averages rallied after two favorable economic reports were released. Volume totals were reportedly higher on both major exchanges which was a welcomed sign. Advancers led decliners by a 3-to-1 ratio and the NYSE and by a 2-to-1 ratio on the Nasdaq exchange. New 52-week highs easily outnumbered new 52-week lows on the NYSE and the Nasdaq exchange. There were 35 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher from the 27 issues that appeared on the prior session.
Healthy Economic Data Lifts Stocks- Jobs & Service Index:
Stocks closed higher after the ADP said private employers added more jobs than expected last month and the ISM’s service index topped estimates. ADP Employer Services, the country’s largest private payrolls report, showed companies in the US added 42,000 employees to payrolls in July, topping the Street’s forecast of 30,000 increase. This report bodes well for Friday’s non farm payrolls report.
Elsewhere, the Institute for Supply Management’s index of non-manufacturing businesses, which covers over +85% of the economy, rose to 54.3 from 53.8 in June. Analysts were looking for a decline to 53. It is also important to note that any reading above 50 signals expansion.