Stocks Advance On Data; Greece, Jobs Report Loom

Stocks finished decidedly higher on Wednesday as the S&P 500 and DJIA both snapped four-day losing streaks. Major indices started the day surging following a better than expected PMI from China, which was above 50 in the month of January.

Better than expected Eurozone PMI’s and a pull back in T-bill rates in Portugal also strengthened sentiment early on, as did and increase in optimism surrounding the Greek PSI negotiations. Speculation was that a deal was likely to be announced sometime on Wednesday.

Though major indices gapped up at the open, stocks would extend gains in early trading thanks to the highest ISM Manufacturing Index reading since June, also marking the 30th straight month of expansion.

Stocks would give up gains in a selloff into the close. The selloff occurred due to a late-afternoon report that Germany was holding up the deal-making process at the Greek PSI negotiations, which left investors with another thing to worry about. Though the bulls have been staving off a pullback for nearly a week now, they didn't have the fortitude to break significantly higher while the Greece situation is still on the table and ahead of some economic data on Thursday and Friday.

The S&P 500 closed in the familiar 1310-1330 zone that it’s been navigating around these past couple weeks, albeit at the higher end. Still, despite the positive leanings of today’s session, Thursday’s data and Friday’s jobs report mean this market can be either camp’s ball game in the short-term. It’s also worth noting that the intraday action was a wash, as the SPY ($132.47) only closed $0.18 above its open (or +0.13%).

Close Recap: S&P 500 +0.89%, NASDAQ +1.22%, DJIA +0.66%, Midcaps +1.92%.

Have a pleasant evening.

 

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