ADP PRIVATE PAYROLLS & ISM POWERS DOW JONES TO ALL-TIME HIGH
Dow Jones futures are currently trading at 26925- higher by 0.40% as compared to the last closing. In the cash markets, the DJIA rose to an all-time high of 26939.89 earlier in the session. The rise in 30- stock index was led by gains in Intel and JP Morgan.
ADP and Moody’s Analytics reported earlier today that Private Payrolls increased by 230K in September. The growth in Payrolls was the highest since February. Markets expected a gain of 185K in Sept.
Treasury Yields advanced after the report’s release. The 10-year Treasury yield rose to 3.086% pushing Bank stocks such as J.P. Morgan higher.
Canada reached an understanding with the US on Sunday, to sign the revamped NAFTA agreement which is a tripartite free trade agreement that comprises the U.S Mexico and Canada. This has boosted the U.S. markets generally and supported some index constituents in particular. US aircraft maker Boeing which competes with Canadian aircraft maker Bombardier was boosted by the deal. Boeing hit an all-time high of 392.38 earlier today supporting the index further.
Among other top gainers in the Dow Jones, Caterpillar advanced 1.5%, Apple rose 1.4%, Microsoft advanced 0.7% and Chevron rose 0.7% at the time of writing. McDonald and Pfizer advanced 1% each at the time of writing.
The ISM services PMI reports released earlier today indicated that the U.S. services sector expanded in Sept. at its fastest pace on record. The ISM Non-manufacturing index came in at 61.6 for Sept. The index reading was the highest since it was created in 2008. The markets expected a reading of 58 in September with the reading in August being 58.5.
On the technical front, the RSI is currently at 74.19% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
So, the overall market setup seems to be positive. Short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Buy at 26880. Take Profit at 27000. Stop Loss at 27060.