MARKET Situation: Dow Reaches 17000 following the ADP release.

On Wednesday, the U.S Stocks built on the previous day’s figures and set a fresh, new, record. This jump in the stock market was caused by a remarkable report, ADP. This report was on the private sector employment, and it highlighted the U.S economy’s position, making it even stronger.

Following a remarkable Tuesday, where the Standard & Poor’s 500 indexes and the blue chip indexes were on all-time high figures, the industrial average also stayed around the outstanding figures of 17,000. According to the reports, by the end of Wednesday, the Dow Jones points increased by 1 point, thus bringing the figures to 16,968. As far as the Nasdaq (RIXF) and Standard & Poor’s 500 indexes were concerned, the figures rose to 4,463 and 1,974 respectively.

Economists were of the opinion that the private sector would provide almost 215,000 new jobs during the month of June. However, the actual number of jobs provided was 281,000 jobs, thus breaking all records and beating all expectations. Where the ADP has already been released, the government’s report on monthly jobs will be released on 3^rd July. Previously, it was scheduled on July 4^th, but keeping in view the 4^th of July holiday, the release will be a day earlier.

According to Steven Ricchiuto, Mizuho Securities’ chief economist, the ADP report was not a very good job growth indicator. On the other hand, R.W. Baird’s chief investment strategist, Bruce Bittles, said that the ADP report had set new records. According to Bittles, the stock market is already down after the release of ADP and it will not be doing much after the release of government’s report.

Moreover, the economists had predicted a decline of 0.4 percent in the factory order for the month of May. However, according to the government figures, released on Wednesday, the decline has been reported at 0.5 percent.

Additionally, the analyst firms in the market kept in view the comments of Christine Lagarde, Managing Director of IMF, and Janet Yellen, Chief at Federal Reserve, and at least one firm termed those comments as polite and dovish. The Standard & Poor’s 500 indexes jumped up when Yellen’s speech was disclosed, however, the gain quickly scaled down.

Furthermore, Constellation Brands Inc. (STZ)’s share prices increase by 3 percent when the company posted its remarkable quarterly performance charts and figures. Similarly, the stock prices of Rackspace Hosting Inc. (RAX), a cloud-services corporation, increased by 8 percent when a report, released in the market, stated that the company is deliberating whether to go private or not

On the flip side, the stock prices of GoPro Inc. (GPRO) and J.P. Morgan Chase & Co. (JPM) fell down considerably. GPRO’s decline was recorded at 10 percent whereas JPM’s downfall was reported to be at 1 percent.

Lastly, the (CLQ4) August oil fell down whereas (GCQ4) gold prices are predicted to rise. Asia Stocks were reported higher: there was a 0.3 percent increase in the average of Japan’s Nikkei, whereas the Stoxx Europe 600, on Tuesday, touched its highest figures for the first time in the last two months.