U.S. stocks rallied today, with the Dow Jones industrial average nearing a 200-point gain, lifted by a strong jobs report released just two days before the governments November employment data will be announced. ADP Employer Services said the private sector added 189,000 jobs in November, much better than Wall Street forecasts for a 50,000-job gain in a governments report due out on Friday. The jobs report is likely to have a bearing on the interest rate decision Federal Reserve officials will take when they meet on Dec. 11. Fed funds futures have priced in a 100% certainty of a quarter-point cut in the 4.5% benchmark rate, while the odds of a 50-point cut are 40%.
If the non-manufacturing ISM index is this weak, and the manufacturing ISM is that weak, and jobless claims are rising and consumer sentiment, confidence, comfort indexes is so weak, and housing (is) coming apart at the seams can the ADP survey showing 189,000 new jobs be right? asked Robert Brusca, chief economist at FAO Economics.
The Dow closed up 196.23, or 1.48%, at 13,444.96; the S&P 500 rose 22.22, or 1.52%, closing at 1,485.01; and the Nasdaq composite was up 46.53, or 1.78%, to close at 2,666.36. All numbers are preliminary.