US shares higher into close
WTI (West Texas Intermediate) crude lower
Traders brush aside geopolitical worries for now
ADP private sector jobs report cheers
US shares are firmly higher heading into the close with tech stocks on a roll.
The Nasdaq index is up over 62 points at 6,361 and messaging firm One Horizon Group Inc (NASDAQ:OHGI) s top performer, up over 54% to $1.15. Incyte Corp (NASDAQ:INCY) was also almost 10% higher.
The Dow Jones meanwhile is 21 higher at 21, 866 and the S&P 500 is up nearly 11 at 2,457
In Toronto, the TSX is ahead by almost 80 points at 15,162.
US crude is down 0.90% to $46.02 a barrel.
Companies in the U.S. added 237,000 jobs in August, ADP report shows https://t.co/CHz11dLmZv pic.twitter.com/2jzzz0Xlhf
— Bloomberg Economics (@economics) 30 August 2017
MID-SESSION
As European indices rose, US stocks followed suit today as traders take a break from fretting about geo-political issues.
Sentiment may also have been bolstered by the ADP private sector jobs report ahead of Friday's non-farms , which showed that US businesses added a healthy 237,000 jobs in August.
This is far better than analysts’ predictions for Friday's figure - of 180,000 jobs.
The Dow Jones is up over 36 points at 21,901, while the S&P500 is up 12 to 2,458.
The tech heavy Nasdaq gained over 66 to 6,368.
US crude is down 0.84% at $46.06 a barrel. In Toronto, the TSX is up almost 79 points to stand at 15,161.
In companies, AeroVironment Inc (NASDAQ: AVAV) , the drone firm, added almost 17% as it posted better than expected quarterly results.
Caleres Inc (NYSE:CAL) added over 10% to $27.45 as the company reported stronger-than-expected results for its second quarter.
Elsewhere, on the losing frontg Otonomy Inc (NASDAQ:OTIC) plunged over 81% to $3.80 as it issued results from a Phase 3 trial for OTIVIDEX in patients with Meniere's disease.
The study missed the primary endpoint and all key vertigo secondary endpoints. Otonomy reported that it will immediately suspend all development activities for OTIVIDEX.
READ THE LONDON CLOSE - FTSE 100 closes higher as traders enjoy 'quiet in the storm'
US GDP revised upwards
United States gross domestic product (GDP) was revised upward amid faster than expected second quarter growth, marking the star-spangled economy’s quickest upturn in over two years – but, such is the present market the upgrade didn’t really register with investors.
GDP growth increased by 0.4 percentage points, to 3%, meaning the economy grew by a rate of 2.1% in the first half.
“The US economy posted its best quarter of growth since Q1 2015 in Q2 2017,” Berenberg Capital Markets highlighted in a note.
“It should not be taken at face value, the US is not a 3% economy – some of it is due to a rebound from the quirky Q1 GDP estimate.
“But a confluence of factors, including a rebound in business fixed investment - growing by 7% in the first half of the year after a decline in 2016 - and synchronized improvement in global growth are supporting the US economy.”
OPEN
US stocks were generally higher at the open, although it was a rather unconvincing start as traders mulled over the North Korea missile issue and the potential fallout from Hurricane Harvey.
The storm has wreaked utter chaos in Texas, notably Houston and more than 20 are reported dead.
Experts say it could take years for the fourth biggest US city to recover. Meanwhile, the storm has hit land again - this time in Louisiana. New Orleans is bracing itself for up to 25cm of rain.
On Wall Street, the Dow Jones is up 5.93 at 21,870, while the S&P 500 added 3.06 points at 2,449. The Nasdaq gained over 26 points to stand at 6,328.
US crude is off 0.73% to stand at US$46.10 a barrel as the oil market continues to be affected by events in Texas.
The storm has meant around a fifth of US refineries have been closed.
In companies, a notable riser on the S&P 500 is Analog Devices (NASDAQ: ADI), whose shares added 4.26% to stand at $82.74 each after its quarterly results.
Conversely, H&R Block (NYSE:HRB) shed 7.25% to $27.11 despite it reporting a first quarter beat on revenue and earnings.