4:05pm: US equities end mixed on the first trading day of September
US stocks closed mixed on the first trading day of September after a disappointing employment report.
US companies created far fewer jobs than expected in August with private payrolls rising just 374,000, well below the consensus estimate of 600,000.
On the day, the DJIA dropped 48 points, or 0.14%, to 35,312 but the S&P 500 rose a slight 0.03% to 4,524.
The tech-heavy Nasdaq also increased -- up 0.33% to 15,309 -- to reach a new closing high.
12:05pm Markets mixed at midday
The Dow Jones Industrial Average shed 29 points by the noon hour to start the month in the red at 35,331. Despite September headwinds the DJIA is still holding in record territory.
The S&P 500 made a modest gain over the morning hours adding 7 points to maintain its 4,529 level. August saw the index record a seventh consecutive month of gains adding almost 3% over the 31-day period.
The tech heavy NASDAQ made the largest gain, rising 104 points to 15,363. As technology stocks continue to outperform the index retains its position in record high territory.
Elsewhere, the ADP released its National Employment Report which indicated private payrolls rose by 374,000 in August, almost 50,000 higher than the previous month, but short of the forecasted 613,000.
“Signs of a slowdown in job creation in today’s ADP report have hit US retail and industrial stocks, while giving a further boost to the tech sector as investors pile back into the safety of mega-cap FANG stocks,” Chris Beauchamp, Chief Market Analyst at IG wrote in a morning note.
The analyst explained that investors were turning to “These heavyweights” as sentiment that the economic rebound will benefit physical economy stocks wanes. Resulting in a return to stocks that are known for cash generation, like; Apple and Amazon.
“It is an odd flight to safety, but then these are odd times, and it pays to stick with what you know rather than go chasing an uncertain future,” he noted. “ What the ‘old economy’ stocks need is a big infrastructure bill, but Biden’s ability to push hard on this has been stymied to an extent by the situation in Afghanistan, which has both weakened his position and distracted attention from the US economy itself.”
11.20am: Proactive North America headlines:
BioHarvest Sciences says it has successfully scaled its cannabis cells with trichomes production by a factor of 250 times and it is now growing them in medium-scale bioreactors
MGC Pharmaceuticals reports strong phytocannabanoid sales
The Good Shroom (TSX-V:MUSH) says its Velada cannabis brand to be sold online and in stores in Ontario
Elys Game Technology granted its first US-based sports wagering license, set to launch US platform at Grand Central Restaurant & Bar in Washington DC
Progressive Planet receives funding from Canadian Government to optimize PozGlass SCM
Deep-South Resources updates on status of Haib Copper project with Namibian High Court decision
Adastra Holdings (CSE:XTRX, FRA:D2EA) says subsidiary's application for a Controlled Drugs and Substances Dealer's License accepted by Health Canada
Royal Road Minerals reveals more encouraging drill results from its Caribe discovery in Nicaragua
Planet 13 enters into definitive agreement to acquire cannabis license in Florida
Greenlane Holdings and KushCo Holdings finalize previously announced merger
Viscount Mining kicks off phase 3 drilling at Silver Cliff in bid to expand Kate deposit resource
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) strikes deal with the Canadian Hockey League to roll out its Wallet pass at venues across North America
Marble Financial sees 2Q revenue jump by triple-digits year-over-year as it adds more MyMarble members
The Valens Company (TSX:VLNS, OTCQX:VLNCF) has acquired Verse Cannabis and all its intellectual property
Naturally Splendid Enterprises shifts focus to growing its own plant-based food line as it reports 2Q numbers
Contakt World (CSE:HELP) to create network of independent sales representatives to scale HealthCheck screening tool
Trillion Energy International unveils plan to redomicile from Delaware, USA, to British Columbia, Canada
Codebase Ventures receives confirmation of delivery for all 115 Antminer S17+ 76Th bit mining units at its hosting facility in New York State
GR Silver Mining (TSX-V:GRSL) starts 1,500m of underground resource expansion drilling at San Marcial project
Delta 9 Cannabis closes transaction relating to the operation of two retail cannabis stores in Edmonton, Alberta
Soma Gold expects to be using full processing capacity by year-end as revenue grows in second quarter
Else Nutrition expands its Plant-Based Complete Nutrition for Toddlers into Roche Bros. locations this September
9.55am: More data eyed
US stocks were mixed in early deals on Wednesday as investors awaited the Institute for Supply Management’s survey of manufacturing purchasing managers, and after a key private payrolls report missed forecasts.
After almost half an hour of trading, the blue-chip Dow Jones Industrial Average had edged 25 points or 0.1% lower to 35,335, though the broader S&P 500 index gained 0.1%., and the tech-heavy Nasdaq Composite added 0.4%.
Craig Erlam, senior market analyst at OANDA Europe commented: "The focus here is naturally on the Fed and, as Powell said on Friday, while tapering may begin later in the year, it will be done cautiously and is in no way indicative of when rates will rise. Against this backdrop, I don't think investors are as anxious about a policy misstep as they could be because it seems far less likely than it has been in the past.
"There looks to me to be a lot of underlying optimism in the markets, despite the fact that the coming months will no doubt throw up some nasty surprises and businesses are already a little nervous about what the end of the year will bring. Of course, with plenty of data to come this week, including Friday's jobs report, the mood could change."
Erlam noted: "ADP payrolls fell well short of expectations on Wednesday, coming in almost half of market forecasts and potentially sending a terrible warning sign ahead of Friday's jobs report. As we've seen so often in the past, the data piqued the interest of those in the markets but didn't get much of a reaction, owing to its rare ability to actually provide reliable insight into the jobs report two days later."
He concluded: "The data was interesting and will certainly get people thinking about the potential for a big miss in Friday's NFP number - which is currently forecast at around 750,000. But that's about it."
6.30am: Rally predicted
US stocks are expected to push higher on Wednesday ahead of manufacturing data, buoyed by hopes US interest rates will remain on hold for the foreseeable future even if the Federal Reserve starts to taper bond purchases.
Futures for the blue-chip Dow Jones Industrial Average and the broader S&P index 500 both gained 0.4%, while contracts for the tech-laden Nasdaq-100 added 0.3%.
The main indices slipped back on Tuesday, albeit with the S&P 500 and Nasdaq Composite having risen to all-time highs after Fed chairman Jerome Powell appeared to disengage rate rises from tapering moves in a speech on Friday.
Investors will eye US manufacturing data on Wednesday to see whether the coronavirus (COVID-19) Delta variant has dented the pace of the economic expansion. The Institute for Supply Management’s survey of manufacturing purchasing managers, due at 10am ET, is expected to show activity expanded at a slower pace in August than in July.
Earlier on Wednesday, a private manufacturing survey in China fell to its lowest level in over a year, suggesting COVID-19 outbreaks had led to a decline in activity in August.
Oil prices rose on Wednesday ahead of a meeting of members of the Organization of the Petroleum Exporting Countries, Russia and the cartel’s other partners. The group agreed in July to boost output by 400,000 barrels a day each month through the end of 2022. Since then, the spread of the Delta variant of coronavirus has threatened to stall the recovery in demand, prompting volatility in oil prices.
On the corporate news front, Campbell Soup is due to report quarterly results ahead of the opening bell, while Costco (NASDAQ:NA:COST) Wholesale is scheduled to publish monthly sales data after the market close.
Five things to watch on Wednesday:
Walmart Inc (NYSE:WMT) has said it plans to hire 20,000 workers at its supply chain division and raise wages ahead of the busy holiday season anticipating higher demand, as the firm also became the latest US retailer to say that it is ready to administer millions of COVID-19 booster vaccine doses this fall if US health officials endorse such a shot to improve fading immunity against the coronavirus.
Hershey Co (NYSE:HSY). is being sued by a California cookie maker for the right to keep using a stylized chocolate chip teardrop on its packaging, after Hershey Co (NYSE:HSY)mplained it looked too much like its famous Hershey's Kisses.
Dutch health technology company Philips has said it will start repairing and replacing millions of respiratory devices in the United States and most of its other markets this month, to address potential health risks caused by the machines.
French spirits maker Pernod Ricard has said it is confident its sales momentum will continue this year after a rebound in demand in China and the United States helped it to deliver stronger-than-expected annual profits.
Swedish steelmaker SSAB has partnered with Daimler (ETR:DAI)'s Mercedes-Benz to introduce fossil fuel-free steel into vehicle production, with prototype parts for body shells planned for next year.