The stock markets in the United States fluctuated today after data from ADP Research Institute in collaboration with Moody’s Analytics showed that the private sector added 281,000 jobs in June, higher than the 205,000 jobs estimated by economists polled by Bloomberg.
The Dow Jones Industrial Average (DJIA) and the SP 500 eventually ended the trading session slightly higher while the NASDAQ was down by a very small percentage.
In his 2009 annual letter, Baupost Group's Seth Klarman laid out what he believed to be the 20 Investment Lessons of 2008. SORRY! This content is exclusively for paying members. SIGN UP HERE If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or Read More
According to ADP, small business in the country added 117,000 jobs, medium businesses created 115,000, and large companies employed additional 49,000 workers last month. Carlos Rodriguez, president and CEO of ADP said, “The June jobs number is a welcome boost. The number of construction jobs added was particularly encouraging, representing the highest total in that industry since February of 2006.”
On the other hand, Jim McDonald, chief investment strategist at Northern Trust Co told Bloomberg, “The ADP data is very strong. It’s another sign that we’re regaining some momentum in the latter part of the year. People are probably not going to want to have big bets on ahead of the payroll number.”
The Department of Labor is scheduled to release its June employment data tomorrow. Economist predicted the economy added 215,000 jobs in June.
“Everything that we’re seeing in the second quarter has generally been improving and in most cases accelerated improvement. The market’s looking to say the outlook for the next few quarters is more positive than we saw certainly in the first quarter,” according to Chris Bouffard, chief investment officer at Mutual Fund Store.
- Dow Jones Industrial Average (DJIA)- 16,975.31 (+0.11%)
- S&P 500- 1,974.55 (+0.67%)
- NASDAQ- 4,457.73 (-0.02%)
- Russell 2000- 1,198.95 (-0.58%)
- EURO STOXX 50 Price EUR- 3,252.25 (-0.20%)
- FTSE 100 Index- 6,816.37 (+0.20%)
- Deutsche Borse AG German Stock Index DAX- 9,911.27 (+0.09%)
- Nikkei 225- 15,369.97 (+0.29%)
- Hong Kong Hang Seng Index- 23,549.62 (+1.55%)
- Shanghai Shenzhen CSI 300 Index- 2,170.87(+0.29%)
Stocks in Focus
The stock price of Constellation Brands, Inc. (NYSE:STZ) gained 2.34% to $90.45 per share after the marketer and producer of beer, wines, and spirits reported first quarter profits that beat the estimates of Wall Street analysts. The company also raised its full year earnings outlook.
Constellation Brands posted adjusted earnings of $1.07 per share compared with the $0.93 per share expected by analysts. The company raised its full year EPS guidance in the range of $4.10 to $4.25 from $3.95 to $4.15.
The shares of Harley-Davidson Inc (NYSE:HOG) declined 3.6% to $67.80 per share after Raymond James Financial Inc lowered rating for the stock from Strong Buy to Market Perform. The new stock rating is equivalent to Hold.
Rackspace Hosting, Inc. (NYSE:RAX) surged 6.31% on report that it is in talks with a private equity firm to borrow capital for the transaction to go private, according to TechCrunch based on information from unnamed sources. The report indicated that the open cloud company is expected to announce a deal within this week. Morgan Stanley (NYSE:MS) is helping the company to explore strategic options.