Now That is the Way to Start a Month!

Market Summary

Wall Street jumped in trading Thursday, posting its best session since the September QE3 announcement. Bullish consumer confidence and private-sector jobs data gave investors reason to cheer ahead of the October Employment Situation. It was nice to see positive economic news be a catalyst for the market following the recent hairy move in equities. Things are still struggling to get back to normal post Sandy, however the late October volatility presented itself in November’s open. The Dow Jones industrial average gained 136.16 points, or 1.04 percent, to 13,232.62 at the close with 27 of the 30 blue chips advancing. The Standard & Poor’s 500 Index shot up 15.43 points, or 1.09 percent, to finish at 1,427.59, led higher by technology and materials. The Nasdaq Composite Index advanced 42.83 points, or 1.44 percent, to close at 3,020.06.

Oil for December delivery rose 85 cents, or 1%, to $87.09 a barrel on the New York Mercantile Exchange. Gold fell on the positive economic data, losing $3.60, or 0.2%, to settle at $1,715.50 an ounce.

Economic Rundown

According to ADP, private payrolls in October rose by 158,000, above analyst projections of 155,000 and on the higher end of the 109,000 to 180,000 consensus range. In the other jobs news of the premarket, Initial jobless claims fell 9,000 to 363,000 for the week ending October 27. The prior week was revised up 3,000 from the original 369,000. The 4-week moving average was 367,250, a decrease of 1,500 from the previous week’s revised average of 368,750.

The ISM manufacturing index rose two-tenths on the month to 51.7. This topped the consensus number for 51.5 and above the expansion/contraction mark of 50 for the second consecutive month.

October consumer confidence improved in October to a reading of 72.2, up from 68.4 in September. While below the consensus estimate of 74.0, consumer confidence is now at its highest level this year.

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