US close: Dow bounces after oil rally helps break seven-day fall

The Dow Jones snapped a seven-day losing streak on Wednesday as private sector jobs data raised expectations for the non-farm payroll report at the end of the week, abetted by a rebound in oil prices.

The Dow Jones Industrial Average ended up 0.14% at 18,339.11 after the previous day saw its lowest close since 11 July, while the S&P 500 recovered around half its losses since Friday as it finished 0.31% higher at 2,163.79, with the Nasdaq nudging back up 0.43% to 5,159.74 as it hovers near its all-time high.

After the stock market closed, West Texas Intermediate futures continued rising and were up 4.3% to $41.19 per barrel, while Brent Crude was up 3.9% at $43.43 after a report on revealed a large drop in stockpiles.

Commercial crude oil stocks in the US rose by 1.4m barrels over the week ending on 29 July, to reach 522.5m barrels, the US Department of Energy's Energy Information Administration arm said in a report, but motor gasoline inventories were depleted by 3.3m barrels.

US macroeconomic data on the day was mixed, with improvements in the jobs market overshadowing weakening services sector growth.

Private employers added 179,000 jobs last month, beating expectations for a 170,000 jump, the ADP revealed, thanks to an increase in jobs at mid-sized business.

The June figure was revised up to show that 176,000 jobs had been added versus 172,000 previously, and as usual were examined closely for their inconsistent ability to foreshadow Friday's all-important NFPs.

David Morrison, senior market strategist at SpreadCo, said: “This was good news as far as investors were concerned, but it doesn’t necessarily mean that we’re set for a strong non-farm payroll number on Friday.

“Analysts are generally wary of taking the ADP data as a heads-up for non-farm payrolls as the latter tends to be much more volatile than the ADP release. This has certainly been the case over the last few months. But the other issue is that the next Fed meeting isn’t until 20/21st September. Not only will July’s employment data be old news by then, but the market already doubts that the Fed will tighten monetary policy this year, let alone ahead of November’s presidential election.”

Another report showed the US services sector expanded at a sluggish pace last month, albeit faster than expected.

Markit’s final US business services purchasing managers’ index was unchanged at 51.4 in July, but up from the flash estimate of 50.9, indicating only a very modest expansion. A reading above 50 indicates expansion. Economists had been expecting a reading of 51.0.

Separately, the Institute for Supply Management’s index of non-manufacturing activity fell to 55.5 in July from 56.5 in June, missing expectations for a reading of 56.0.

On the corporate front, Time Warner shares rose on news it is buying a 10% stake in web TV service Hulu.

Kate Spade plunged after reporting quarterly profit that trailed analysts’ estimates and cutting its full year earnings forecast.

Office Depot rallied as the company swung to a quarterly profit and said it would close 300 stores in the next three years to cut costs.

FitBit surged after it released better-than-expected second-quarter earnings late on Tuesday.

Etsy was also on the front foot after the online marketplace posted a wider loss for the second quarter on Tuesday but a rise in revenue and users.

Dow Jones - Risers

JP Morgan Chase & Co. (JPM) $64.66 1.59%
Goldman Sachs Group Inc. (GS) $158.34 1.46%
Apple Inc. (AAPL) $105.79 1.25%
Walt Disney Co. (DIS) $96.09 1.14%
Chevron Corp. (CVX) $100.58 1.02%
Caterpillar Inc. (CAT) $82.03 0.97%
Travelers Company Inc. (TRV) $117.94 0.81%
Microsoft Corp. (MSFT) $56.96 0.67%
American Express Co. (AXP) $63.83 0.57%
Visa Inc. (V) $78.71 0.55%

Dow Jones - Fallers

Pfizer Inc. (PFE) $35.29 -3.02%
Merck & Co. Inc. (MRK) $57.65 -1.17%
Procter & Gamble Co. (PG) $85.97 -0.91%
Intel Corp. (INTC) $34.25 -0.90%
Johnson & Johnson (JNJ) $123.90 -0.76%
Nike Inc. (NKE) $54.75 -0.31%
Wal-Mart Stores Inc. (WMT) $72.94 -0.26%
Unitedhealth Group Inc. (UNH) $142.80 -0.20%
Verizon Communications Inc. (VZ) $53.90 -0.19%
McDonald's Corp. (MCD) $117.52 -0.15%

S&P 500 - Risers

Chesapeake Energy Corp. (CHK) $5.29 7.96%
Newfield Exploration Co (NFX) $44.66 7.48%
American International Group Inc. (AIG) $58.10 7.31%
Williams Companies Inc. (WMB) $25.67 7.14%
Cerner Corp. (CERN) $66.30 7.02%
Endo International Plc (ENDP) $18.21 6.43%
Marathon Petroleum Corporation (MPC) $41.22 6.26%
Intercontinental Exchange Inc (ICE) $278.02 5.34%
Southwestern Energy Co. (SWN) $14.50 5.30%
Devon Energy Corp. (DVN) $38.00 5.20%

S&P 500 - Fallers

Qorvo, Inc. (QRVO) $55.12 -10.30%
Verisk Analytics Inc. (VRSK) $79.43 -5.12%
Fiserv Inc. (FISV) $104.45 -4.53%
Pfizer Inc. (PFE) $35.29 -3.02%
Biogen Inc (BIIB) $321.34 -2.66%
Hanesbrands Inc. (HBI) $25.01 -2.50%
Extra Space Storage (EXR) $83.04 -2.49%
NiSource Inc. (NI) $25.34 -2.31%
Hormel Foods Corp. (HRL) $36.13 -2.11%
CMS Energy Corp. (CMS) $44.13 -2.00%

Nasdaq 100 - Risers

Cerner Corp. (CERN) $66.30 7.02%
Endo International Plc (ENDP) $18.21 6.43%
Dish Network Corp. (DISH) $51.32 4.33%
Mylan Inc. (MYL) $48.41 4.04%
Liberty Global plc Series A (LBTYA) $32.48 3.34%
Alexion Pharmaceuticals Inc. (ALXN) $137.66 3.03%
Liberty Global plc Series C (LBTYK) $31.44 2.81%
Biomarin Pharmaceutical Inc. (BMRN) $101.46 2.41%
Electronic Arts Inc. (EA) $78.63 2.41%
Incyte Corp. (INCY) $90.81 2.09%

Nasdaq 100 - Fallers

Verisk Analytics Inc. (VRSK) $79.43 -5.12%
Fiserv Inc. (FISV) $104.45 -4.53%
Biogen Inc (BIIB) $321.34 -2.66%
Starbucks Corp. (SBUX) $55.94 -1.39%
Illumina Inc. (ILMN) $165.05 -1.12%
Akamai Technologies Inc. (AKAM) $49.44 -1.04%
Skyworks Solutions Inc. (SWKS) $64.39 -1.00%
Monster Beverage Corp (MNST) $157.77 -0.96%
Intel Corp. (INTC) $34.25 -0.90%
Amazon.Com Inc. (AMZN) $754.64 -0.78%