Tech drives markets higher; Salesforce and Marvell shine while energy and housing lag.
The tech-heavy Nasdaq led the way higher jumping by 254.21 points (1.3%) to 19,735.16. The Dow also advanced 308.51 points (0.7%) to 45,014.04 while the S&P 500 climbed 36.61 points (0.6%) to 6,086.49.Salesforce (CRM) surged by 11% after reporting third quarter revenues. Chipmaker Marvell Technology (MRVL) also soared by 23.2% after reporting third quarter results contributing to strength in the tech sector.
Payroll processor ADP released a report this morning showing private sector employment in the U.S. increased by slightly less than expected in the month of November. It climbed by 146,000 jobs in November after jumping by a downwardly revised 184,000 jobs in October.
Institute for Supply Management released a report that showed U.S. service sector growth slowed by more than anticipated in the month of November. Its services PMI fell to 52.1 in November from 56 in October.
CME Group's FedWatch Tool is indicating a 75.5% chance the Federal Reserve will lower interest rates by 25 bps later this month. During remarks later in the afternoon, Fed Chair Jerome Powell reiterated the central bank will take a cautious approach to cutting rates due to the continued strength of the economy.
Airline stocks moved sharply higher with the NYSE Arca Airline Index soaring by 2.9%. Computer hardware stocks saw substantial strength as reflected by the 2.8% surge by the NYSE Arca Computer Hardware Index. Pure Storage (PSTG) helped lead the sector higher, spiking by 22.1% after reporting third quarter results.
Software, semiconductor and biotechnology stocks also saw considerable strength, contributing to the jump by the tech-heavy Nasdaq. Energy stocks moved sharply lower along with the price of crude oil while housing stocks were notably weak.
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Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index inched up by 0.1% while China's Shanghai Composite Index fell by 0.4%. The major European markets also ended the day mixed. While the U.K.'s FTSE 100 Index dipped by 0.3%, the French CAC 40 Index climbed by 0.7% and the German DAX Index jumped by 1.1%.
In the bond market, treasuries recovered from early weakness and climbed firmly into positive territory over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price fell 4.3 bps to 4.18% after reaching a high of 4.28%.
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