With under an hour to the close in New York, the leading stock index benchmarks were still up sharply, with the Dow boasting triple-digit gains, up 0.71% at 16,541, the S&P up 0.62% and the NASDAQ 100 rising 0.95% to 3560.0.
2013 was an impressive year for the US stock market, but a typical behaviour throughout the year was an air of caution leading into important economic releases. Interestingly the sentiment on Wall Street has switched into one of optimistic expectancy ahead of this week’s significant economic reports, with investors seemingly looking forward to the release of official government employment figures on Friday.
Tomorrow we have ADP’s national employment report, which attempts to estimate private payroll growth. A Reuters poll of analysts gives a consensus estimate of a rise of 200,000 for this report. Some market participants look to this indicator as a way of getting an early gauge of Friday’s far more important non-farm payrolls, but I personally don’t put much weight into ADP’s report, as it consistently showed a poor correlation to government figures throughout last year.
The minutes form the last FOMC meeting are also released tomorrow.