After arresting the decline yesterday, the market showed continued strength all morning on the back of increasing new orders from the ISM's manufacturing index. In the morning, the ADP private payrolls figure rose to 158,000 from last month's revised-lower estimate of 114,000. Despite the negative economic data, stocks continued to rally, but not in a healthy fashion. The economically sensitive Russell 2000
(INDEXRUSSELL:RUT) index notably underperformed the broader S&P 500
(INDEXSP:.INX) index. Last month's consumer confidence data showed a sharp rise to 72.2, but the prior month's figures were revised lower to 68.4 from 70.3, so the overall gain was muted.
October's monthly vehicle sales did not rise as much as expected. The notable auto manufacturer misses were Ford
(NYSE:F) and General Motors
In the morning, Pfizer
(NYSE:PFE) missed earnings and narrowed its forward earnings guidance, but in an effort to prop up the stock, it announced a $10 billion share buyback on top of the existing $4.1 billion plan. This would be accomplished after the company sold its nutrition business to Nestle. After the close, Starbucks
(NASDAQ:SBUX) rallied on better-than-expected earnings, as did momentum favorite Priceline.com
Tomorrow's Financial Outlook
The monthly nonfarm payrolls report will be released in the morning. After the somewhat strong ADP report, we can expect at least an in-line report against estimates. Economists are expecting a monthly gain of 125,000 jobs, up from last month's gain of 114,000. The unemployment rate is expected to rise to 7.9% from 7.8%.
Globally, the eurozone will release the final estimate of its monthly manufacturing PMI and Canada will release its employment figures alongside the US.
In earnings, Madison Square Garden
(NYSE:MSG) and Alpha Natural Resources
(NYSE:ANR) will report.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.