Volatility continues to reign and is a symptom of an unhealthy market, despite the exhilaration of the up days. The S&P 500 gained 1.83% and the NASDAQ 2.46% as indexes gapped up sharply at the open, sold off some around noon, recovered thru 3 PM then rallied sharply in the last hour. China’s market will be closed Thursday and Friday for holidays so maybe that will help U.S. markets calm down.
On the economic front, July’s factory orders rose 0.4%, below consensus expectations for a 0.9% increase. The second-straight month of increases was driven by strong demand for auto sales. The ADP report missed expectations slightly, showing creation of 190,000 private jobs versus expectations of 200,000.
Fun fact: Analysis by Bespoke found that following declines of more than 1% on the first trading day of September, the S&P averaged a loss of 2.21% for the rest of the month, with positive returns just 40% of the time.Continue reading