Stocks rose on Wednesday, continuing a strong start to September for the market.
The Dow Jones Industrial Average advanced 170 points, or 0.6%. The S&P 500 gained 0.4% and the Nasdaq Composite climbed 0.5%.
Apple was higher by 0.4%. The shares gained 4% on Monday, the first day of trading following a 4-for-1 stock split. Facebook, Amazon, and Alphabet were all up more than 0.9%.
The major U.S. averages rose even after the release of disappointing economic data. ADP said U.S. private payrolls grew by 428,000 in August. Economists polled by Dow Jones expected a gain of 1.17 million.
Peter Boockvar, chief investment officer at Bleakley Advisory Group, said the pace of hiring “has really slowed down over the past two months where the average is just 320k.”
“This print makes Friday’s BLS report really interesting because not only was the private sector BLS July print 1.46 million but the August estimate is 1.29 million, well different and well above than what ADP has said,” added Boockvar.
The major U.S. indexes all rose during Tuesday’s regular session, with the Dow Jones Industrial Average and the Nasdaq Composite closing at record highs. The S&P 500 rose 0.75%, which was its best first trading day of September since 2010, according to Bespoke Investment Group.
Tuesday’s rally came after a banner month for the markets, with the Dow and S&P 500 both rising at least 7% to notch their best August in more than 30 years. The Nasdaq outperformed both of them, gaining 9.59% for the month.
Morgan Stanley Chief U.S. Equity Strategist Mike Wilson said Tuesday on “Closing Bell” that he was still optimistic about the market long-term but that weakness in the weeks ahead was on the table after such a strong rally.
“I remain very constructive over the next 12 months,” Mike Wilson said. “I think we’re a little bit overcooked … It’s impossible to try to time these types of corrections,” Wilson said. “It would not surprise me if we got a 10% correction, but it wouldn’t be surprising if we didn’t, either. We’re in a bull market.”
In Washington, Congressional leaders appear to be far apart in negotiations for another relief package, but the Trump Administration announced on Tuesday evening that the Centers for Disease Control and Prevention would invoke its authority to halt evictions through the end of the year.
The moves Wednesday also followed conflicting news in the fight against the coronavirus, with Swiss pharmaceutical firm Roche announcing that it would launch a new rapid antigen test in Europe by the end of the month. The company said it would apply for an emergency use authorization from the U.S. Food and Drug Administration.
However, an expert panel convened by the U.S. National Institute of Health said that a plasma treatment touted by President Trump and FDA head Stephen Hahn does not appear to be effective against Covid-19 based on current research.
