Dow soared 421 to session highs, advancer over decliners about 3-1 & NAZ gained 127. The MLP index was fractionally higher to 111 & the REIT index went up 2+ to the 248s. Junk bond funds inched higher & Treasuries were sold while stocks rallied. Oil rose in the 39s & gold added 1 to 1904.
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 39.67 | +1.39 | +3.6% |
| GC=F | Gold | 1,891.60 | +11.00 | +0.6% |
Private employers hired at a faster-than-expected pace in Sep, indicating the nation's pandemic-ravaged labor market is continuing to recover from the coronavirus crisis, according to the ADP National Employment Report. The report showed that companies created 749K new jobs last month, topping the 650K-job increase expected. “The labor market continues to recover gradually,” Ahu Yildirmaz, VP & co-head of the ADP Research Institute, said. “In September, the majority of sectors and company sizes experienced gains with trade, transportation and utilities; and manufacturing leading the way. However, small businesses continued to demonstrate slower growth." Sep hiring was spread across most industries, with the biggest gains taking place in manufacturing, which added 130K; trade, transportation & utilities, up 186K, & health care & social assistance, which added 101K. Leisure & hospitality, one of the industries hit hardest by the crisis, added 92K workers. Professional & business services increased by 78K & construction added 60K. Large businesses led industries by size with the addition of 297K jobs last month at firms that employ more than 500 workers. Medium-sized businesses added 259K jobs & small businesses added 192K employees. While the data is typically a good indicator of what to expect in the more closely watched jobs report from the Labor Dept, the ADP figure has regularly missed the gov's count since the pandemic began in mid-Mar. In Jun, for instance, ADP initially said private employers added 2.37M jobs -- well below the 4.8M reported by the gov. It also said the economy lost 2.7M jobs in May, while the Labor Dept reported a gain of 2.5M.
US private employers add 749,000 jobs in September, topping expectations
China's factory activity
expanded at a faster pace in Sep helped by a return to exports
growth after several months of shrinking sales, bolstering a steady
recovery for the economy as it rebounds from the coronavirus shock. The
official manufacturing Purchasing Manager's Index (PMI) rose to 51.5 in
Sep from 51.0 in Aug, data from the National Bureau of
Statistics (NBS) showed, & remained above the 50-point
mark that separates growth from contraction. Analysts expected it to pick up slightly to 51.2. A private
survey, also released on the day, painted a similar picture of the
manufacturing sector gaining momentum backed by stronger overseas
demand. China's vast industrial sector is steadily returning to
the levels seen before the pandemic paralyzed huge swathes of the
economy, as pent-up demand, stimulus-driven infrastructure expansion &
surprisingly resilient exports propel a recovery. The official
PMI, which largely focuses on big & state-owned firms, also showed the
sub-index for new export orders stood at 50.8 in Sep, improving
from 49.1 a month earlier & snapping eight months of declines. The signs of stronger overseas demand were also highlighted in the
Caixin/Markit Manufacturing Purchasing Managers' Index(PMI), which
focuses more on small & export-oriented firms. Its gauge for new
export orders rose at the fastest pace in over 3 years. Recently, economic indicators ranging from trade
to producer prices have all suggested a further pick up in the
industrial sector. Profits at China's industrial firms extended robust
growth in Aug to the 4th month, official data. Domestic
demand also shows signs of broadening, with industrial output
accelerating the most in 8 months in Aug & retail sales growing
for the first time this year.
China's factory activity accelerates at solid pace in Sept on boost from overseas demand
Treasury Secretary Steve Mnuchin said he will talk to House Speaker Nancy Pelosi about coronavirus stimulus again today & is “hopeful” about the prospects of a deal. “I
say we’re going to give it one more serious try to get this done and I
think we’re hopeful that we can get something done,” he said. “I think there is a reasonable compromise here.” The
Treasury secretary added that he aims to find an “understanding” with
Pelosi on a broad relief package by tomorrow. He added an offer he
expects to bring to the speaker — a counter to the $2.2T aid bill the House could vote on this week — will resemble the roughly $1.5T bipartisan House Problem Solvers caucus proposal put forward earlier this month. Pelosi
previously rejected that plan. The legislation included $450 per week
in enhanced unemployment benefits during an 8-week transition
period, another round of $1200 direct payments & more Paycheck
Protection Program small business loan funding, among other provisions. The Trump administration & Dem leaders have failed to forge a
consensus on what to include in a 5th coronavirus relief package as
the outbreak ravages American lives & livelihoods. Before Mnuchin &
Pelosi renewed talks in recent days, doubts had grown about Congress'
ability to pass new aid before the election.
Mnuchin ‘hopeful’ White House and Democrats can strike a stimulus deal
Investors are optimistic about another stimulus bill & Sep data for the economy. The first estimate for Q3 GDP data should be reported in about a month & is expected to show a strong recovery from the depths of the depression in Q2.
Dow Jones Industrials
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