At closing bell, the Dow Jones Industrial Average rose 373.05 points, or 1.4%, to 27,201.52. The S&P 500 index gained 21.26 points, 0.64%, to 3,327.77. The tech-heavy Nasdaq Composite Index added 57.23 points, 0.52%, to 10,998.40, after briefly setting an intraday 11,002.11 record high.
Wednesday's moves came as lawmakers worked to make inroads on a new coronavirus stimulus package by the end of the week even if the parties still remain far apart on the issues. All eyes are now on a fifth major coronavirus-aid bill, as pressure grows on Republicans and Democrats to resolve differences over a new U.S. virus relief package, especially with jobs data Wednesday painting a grim picture.
U.S. economic data was mixed, with payroll gains slowing sharply in July, suggesting the pickup in coronavirus cases is putting the brakes on the job market. Meanwhile, service industries expanded in July at the fastest pace since February 2019.
Moderna, one of the companies working on a treatment for Covid-19, said Wednesday that it's on track to finish enrollment for a phase 3 study of its vaccine by the end of September. The biotech, which has received funding from the United States' Operation Warp Speed program, also said it had about $400 million of customer deposits for a potential supply of its mRNA-1273 vaccine. Moderna made the announcement in its earnings release Wednesday morning. The company posted a loss that was smaller than expected but revenue that topped forecasts.
Payment processor Square Inc. and media titan Walt Disney Co. rose after better-than-forecast earnings. Novavax Inc. jumped on positive early data from its experimental vaccine for Covid-19.
ECONOMIC NEWS: US Trade Deficit Narrows To $50.7 billion In June-- US trade deficit narrowed to $50.7 billion in June from a revised $54.8 billion in May, reflecting a sharp increase in the value of exports, the Commerce Department reported on Wednesday. The narrower deficit came as the value of exports spiked by 9.4% to $158.3 billion in June after tumbling by 4.3% to $144.7 billion in May. Exports of automotive vehicles, parts and engines showed a significant increase along with exports of capital goods and industrial supplies and materials. The jump in the value of exports outpaced a notable increase in the value of imports, which surged up by 4.7% to $208.9 billion in June after dipping by 0.7% to $199.5 billion in May. Substantial increases in imports of automotive vehicles, parts and engines and consumer goods were partly offset by a sharp drop in imports of industrial supplies and materials, particularly non-monetary gold.
US ISM Service Sector Improves Further In July US non-manufacturing index inched up to 58.1 in July after spiking to 57.1 in June, with a reading above 50 indicating growth in service sector activity, the Institute for Supply Management on Wednesday showed. The unexpected uptick by the headline index was partly due to a notable acceleration in the pace of growth in new orders, with the new orders index jumping to 67.7 in July after soaring to 61.6 in June. The business activity index also rose to 67.2 in July after skyrocketing 66.0 in June, pointing to a modest acceleration in the pace of growth. Meanwhile, the report said the employment index edged down to 42.1 in July from 43.1 in June, indicating employment activity in the service sector contracted for the fifth month in a row.
ADP Private Sector Job Growth Slows Sharply In July-- US private sector job growth showed a substantial slowdown in the month of July, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment rose by 167,000 jobs in July after soaring by an upwardly revised 4.314 million jobs in June. The relatively modest increase in private sector employment came as employment in the service-providing sector climb by 166,000 jobs. Meanwhile, the report said employment in the goods-producing sector inched up by just 1,000 jobs, as an uptick in manufacturing jobs was largely offset by a drop in construction jobs. ADP also said employment at large businesses increased by 129,000 jobs and small businesses added 63,000 jobs, while employment at mid-sized businesses fell by 25,000 jobs.
Among Indian ADR, Tata Motors grew 3.71% to $7.82, Vedanta rose 2.2% to $6.49, WNS Holdings added 0.7% to $63.35, HDFC Bank added 0.22% to $46.41, and ICICI Bank rose 1.17% to $9.49, and INFOSYS added 0.08% to $12.65, while Azure Power Global fell 0.14% to $21.42, Dr Reddys Labs shed 0.16% to $61.32, and Wipro shed 0.47% to $4.26.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
