Stock Market Today: Stocks Close Higher After ADP Jobs Data
The main benchmarks notched a fourth straight win after private payrolls rose less than expected and Q2 GDP was lowered.
![blue financial chart with blue moving averages and blue volume bars](https://cdn.mos.cms.futurecdn.net/ZVP8uwuJZePTaEa8Ta9VML-415-80.jpg)
Stocks closed higher Wednesday as investors cheered another bad-news-is-good-news reading on the labor market. However, enthusiasm was contained after a separate economic report stirred up recession fears.
Ahead of the opening bell, ADP said the U.S. added 177,000 private payrolls in August, well below the 200,000 increase expected by economists and the downwardly revised 324,000 gain in July. The Federal Reserve has consistently expressed concern that a stubbornly tight labor market is working at odds with its efforts to bring down inflation, so today's data is welcome news.
Also on the economic calendar was the second reading on Q2 gross domestic product (GDP), which was revised down to 2.1% from the initial reading of 2.4%. Both the second-quarter personal consumption and expenditures (PCE) index – the Fed's preferred measure of inflation that tracks consumer spending – and the core PCE, which excludes volatile food and energy prices, were downwardly revised from the advance estimates.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The [private payrolls] report and this morning's downward revision to GDP imply that the inflation-ridden, red-hot services sector may finally be reaching supply and demand balance, a welcome development relieving market players of further monetary policy intensity at the moment," says José Torres, senior economist at Interactive Brokers.
Torres warns that slowing growth in the labor market and economy could create challenges for both corporate earnings and consumers. But, for now, markets are loving the recent batch of weaker economic data without considering "the risks of recession and deteriorating profitability," the economist notes.
Indeed, all three indexes closed higher for a fourth straight day. The Nasdaq Composite ended up 0.5% to 14,019, the S&P 500 gained 0.4% to 4,514, and the Dow Jones Industrial Average tacked on 0.1% to 34,890.
3D Systems, Stratasys rise on Apple news
In single-stock news, 3D printing stocks 3D Systems (DDD, +2.0%) and Stratasys (SSYS, +2.4%) each gained ground after a Bloomberg report indicated Apple (AAPL, +1.9%) is testing 3D printers to make the steel chassis for some of its new smartwatches. According to the article, Apple could expand its use of 3D printers on other products if this test is successful, which would help improve the tech giant's manufacturing process.
Elsewhere, HP (HPQ) stock slumped 6.6% after earnings. The printer and PC maker – and member of the Berkshire Hathaway equity portfolio – reported fiscal third-quarter earnings of 86 cents per share, matching analysts estimates. However, revenue of $13.2 billion fell short – marking HPQ's third straight top-line miss – and the company gave disappointing fiscal fourth-quarter guidance.
"The macro situation is not improving as quickly as anticipated," said CEO Enrique Lores in the company's earnings call, adding that the "outlook is largely driven by the continued aggressive pricing environment in PCs, sluggish demand in China and enterprise demands."
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Try the 6 to 1 Grocery Shopping Method to Save Time and Money
The 6 to 1 Grocery Method can help you save money, reduce waste and eat healthier.
By Erin Bendig Published
-
Ford Stock Plunges on Earnings Miss: What to Know
Ford stock is down big Thursday after the automaker fell short of earnings expectations for its second quarter. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Stocks Tumble on Disappointing Big Tech Earnings
Poorly received quarterly results from Alphabet and Tesla sparked a steep selloff in equities.
By Dan Burrows Last updated
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets Higher
Markets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
By Dan Burrows Published
-
Stock Market Today: Stocks Tumble After Spectacular Global Internet Crash
Market participants rushed out of risk assets to end a wild week of trading.
By Dan Burrows Published
-
Stock Market Today: Dow Sinks 533 Points as Big Banks, Mega Caps Slump
Goldman Sachs and Apple were two of the worst-performing blue chip stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Semis Get Slammed and Blue Chips Bounce
The potential for more curbs on tech sales to China set off a rotation into blue chips.
By Dan Burrows Published
-
Stock Market Today: Dow Spikes 742 Points After UnitedHealth Earnings
The S&P 500 and Nasdaq also scored wins Tuesday albeit with much smaller gains than the blue chip Dow.
By Karee Venema Published
-
Stock Market Today: Dow Adds 210 Points as Apple, Goldman Hit New Highs
A big rally in blue chips and some dovish Fed speak boosted the equities market Monday.
By Karee Venema Published
-
Stock Market Today: Markets Bounce Back on Rate-Cut Optimism
The latest readings on consumer sentiment and inflation helped lift the odds of the Fed easing in September.
By Dan Burrows Published