SP500 Recovers From Losses. Banks and Energy Companies Lead
U.S. stocks including Sp500 index ticked higher on Wednesday, paring losses suffered over the last two trading days, as rising oil prices and much-better-than-expected service sector data helped boost the energy and financial sectors higher.
Data from the Institute for Supply Management indicated that the U.S Non-Manufacturing PMI index jumped to 57.1 last month, which is significantly higher than the reading of 51.4 in August. The upbeat data raised expectations that the Federal Reserve will raise interest rates before the end of the year. Banking shares went up as higher interest rates improve banks’ revenue and profits.
Oil continued rallying today after the U.S. EIA reported another drawdown in domestic crude supplies. Contrasting with economist estimates calling for an increase in inventories, U.S oil stockpiles actually fell by 3 million barrels in the week ended Sept. 30.
The S&P 500 index has added 0.55% on the day, in trading thus far. Out of 11 sectors making up the index, gainers outnumbered losers by 7 to 4.
SP500 Trade suggestion
Buy Stop at 2162.00, Take profit at 2168.00, Stop loss at 2155.00