This morning, the potential negative market catalyst from
Italy's government was averted when former Prime Minister Silvio
Berlusconi announced his support for current Premier Enrico Letta's
government. Earlier in the morning, it was reported that 22
ministers from Berlusconi's party would vote in support of Letta's
party, despite the earlier ruckus they had caused by threatening to
resign from the Italian Senate. Italian stocks were the best
performers in Europe today; the
(INDEXBIT:FTSEMIB) was up 0.68%.
US stock futures were down almost 1% by the time the market opened.
However, after a brief dip in the opening hour, equities rallied
back to close down 0.34% in the
(INDEXSP:.INX). The materials and energy sector stocks were the
best performers today. These two groups have been the worst
performing sectors this year. However, the worst performing sector
today was consumer staples. The ADP's report of September private
payrolls showed a net gain of 166,000 jobs. The consensus
economists' estimate saw 180,000 jobs created. In addition, the
prior month's 176,000 gain was revised down to 159,000.
Some of today's negativity was also due to a statement from the
Asian Development Bank. The bank said that developing Asian
countries (ex-Japan) would only grow at 6% this year and by 6.2%
next year. Its prior estimate in July forecast 6.3% growth this
year and 6.4% next year.
Gold recovered from yesterday's 3% slide, making up two-thirds of
those losses today. Treasuries rallied after the private payroll
report and held on to most of their gains throughout the rest of
The negotiations in Washington continued to play a dominant role in
today's price action. Fifteen Republicans in the House said that
they would support a continuing resolution that did not include
changes to Obamacare. If 17 Republicans would vote in favor of such
a bill, along with Democratic support, it could pass through the
Tomorrow's Financial Outlook
Weekly initial jobless claims will be released tomorrow morning.
Recently, jobless claims have trended down to their lowest level in
seven years. Another report due out is the ISM's survey of
service-based growth in September. In August, the index rose to an
eight-year high at 58.6. Lastly, August factory orders will be
reported. Economists are estimating only 0.2% monthly growth,
despite very optimistic manufacturing surveys.
Important economic releases across the globe include China's
non-manufacturing PMI, the eurozone's services PMI, and eurozone
retail sales. Last month, non-manufacturing growth in China reached
the second lowest level since the index was created in 2011.
The only major earnings report scheduled for tomorrow is from