Stocks were rising Wednesday as markets kicked off the first trading day of September with a jobs report missing expectations and the Nasdaq hitting an intraday high.
The Dow Jones Industrial rose 19 points, or 0.05%, to 35,379, while the S&P climbed 0.26% and Nasdaq advanced 0.73% at last check.
The tech-heavy Nasdaq reached an intraday high as Apple jumped to an all-high following a Wall Street Journal story that said the tech giant will eventually include a tool to monitor blood pressure and a thermometer to help with fertility planning in its smartwatches.
On Tuesday, Nikkei Asia reported production of Apple’s latest smartwatch reportedly has been delayed largely due to the device’s complicated design.
In addition, Wolfe Research analyst Jeff Kvaal upgraded Apple to peer perform from underperform with a price target of $155, up from $135, according to the Fly.
Stocks ended lower on Tuesday, but ended August on a high note with the S&P 500 finishing a seventh month of gains
“Although this bull market has laughed at nearly all the worry signs in 2021, let’s not forget that September is historically the worst month of the year for stocks,” said LPL Financial Chief Market Strategist Ryan Detrick.
“Even last year, in the face of a huge rally off the March 2020 lows, we saw a nearly 10% correction in the middle of September.”
In economic news, the ADP National Employment report showed a gain of 374,000 jobs in August.
Economists surveyed by Dow Jones had expected the report to show the addition of 600,000 private sector jobs in August, CNBC reported.
“While the weak ADP report is disappointing, it may not be entirely surprising as employers face challenges attracting candidates and cope with the delta variant,” said Mike Loewengart, managing director of investment strategy at E-Trade Financial.
Loewengart said the private payrolls numbers have been all over the map during the pandemic, and often have not been the strongest indicator of how the rest of the jobs report will play out.
“But with so much pressure on improvement on the labor market front coming from the Fed, this could send a signal that jobs growth is stagnating,” he said. “That’s likely a good thing for the markets though as it means easy money policy continues.”
The ADP report will be followed by the nonfarm payroll employment report on Friday. Economists are forecasting that 750,000 jobs were created in August.
Separately, the Institute of Supply Management (ISM) reported that the purchasing managers’ index (PMI) for August increased 0.4 percentage points to 59.9%.
This was better than expectations of 58.5% and marked the 15th straight month of expansion in both the manufacturing sector and the economy overall.
Among the companies reporting, Nio shares edge higher after the Chinese electric vehicle maker lowered its third-quarter deliveries outlook to between 22,500 and 23,500 from 23,000 to 25,000 vehicles due to “continued uncertainty and volatility of semiconductor supply.”
Campbell Soup rose after the soup, sauces, biscuits and confectionary maker’s fiscal fourth quarter sales and revenue came in ahead of Wall Street expectations. Campbell also approved a $500 million share repurchase program.
CrowdStrike rose slightly after the cybersecurity stock raised its financial projections for the year and projected revenue this quarter would be ahead of Wall Street forecasts.
This article was originally published by TheStreet.