S&P 500 advances after release of fresh economic data

The S&P 500 advanced Wednesday for a four-day winning streak, as investors assess new US economic data.

The broad-market index climbed 0.38 per cent, surpassing the 4,500 level, to close at 4,514.87. The Dow Jones Industrial Average added 37.57 points or 0.11 per cent, to finish the session at 34,890.24. The tech-heavy Nasdaq Composite advanced 0.54 per cent to 14,019.31. The S&P’s four-day gain helped the index trim month-to-date losses to roughly 1.6 per cent.

Shares of Apple climbed almost 2 per cent, a day after the company sent out invites for a Sept. 12 launch event where the iPhone 15 is expected to be unveiled. Reports are that the company is testing the use of 3D printers to produce the steel chassis used by some of its upcoming smartwatches, Bloomberg reported.

Wednesday’s moves come as traders pore over disappointing payrolls data. ADP said private employers added 177,000 jobs in August. That’s well below a revised July number of 371,000. It also missed a Dow Jones estimate of 200,000.

Meanwhile, annual gross domestic product growth was downwardly revised on Wednesday to 2.1 per cent from the previous 2.4 per cent forecast.

This is the second day investors have appeared to treat weaker-than-expected economic data as good news for stocks.

On Tuesday, the major US stock benchmarks rallied following the release of disappointing consumer confidence figures and a bigger-than-forecast drop in US job openings for July. This sparked hope among traders that the Federal Reserve could lighten its policy stance sometime soon.

Turning to commodities, hedge funds are engaging in short selling renewable energy stocks, expecting that climate stimulus will lead to inflation and higher interest rates. This could strain debt-dependent green companies sensitive to interest rate changes and commodity costs. CEO of Geneva-based Anaconda Invest highlights the risk these companies face due to their reliance on project financing.

Vale's VP of Iron Ore Solutions, Marcello Spinelli, remains cautiously optimistic about China's steel demand, suggesting that it's not as bleak as certain indicators imply. Despite uncertainties around stimulus measures, Vale, reliant on Chinese sales, is diversifying its base metals unit while maintaining a positive outlook on the world's largest iron ore consumer.

The DEA is looking at whether to reclassify marijuana into a less hazardous category, and cannabis stocks are soaring. The US Department of Health and Human Services wrote to the DEA asking for cannabis to be classified as a Schedule III drug, as opposed to its current Schedule I. Schedule I includes substances such as Ecstasy and heroin. Substances in Schedule III include Tylenol with Codeine.

Turning to US sectors now, Health and Utilities were the only sectors that closed lower. Technology was the best performer.

Futures

The SPI futures are pointing to a 0.1 per cent gain.

Currency

One Australian dollar at 7:25 AM was buying 64.77 US cents.

Commodities

Gold gained 0.40 per cent. Silver fell 0.14 per cent. Copper added 0.13 per cent. Oil gained 0.58 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.12 per cent, Frankfurt fell 0.24 per cent, and Paris closed 0.12 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei added 0.33 per cent, Hong Kong’s Hang Seng closed flat while China’s Shanghai Composite closed 0.04 per cent higher.

The Australian sharemarket closed 1.21 per cent higher at 7,298.

Ex-dividends

Arn Media (ASX:A1N) is paying 3.5 cents fully franked
Ashley Services Grp (ASX:ASH) is paying 3 cents fully franked
Carlton Investments (ASX:CIN) is paying 60 cents fully franked
Dalrymple Bay (ASX:DBI) is paying 5.025 cents 38.54 per cent franked
Eumundi Group Ltd (ASX:EBG) is paying 3.5 cents fully franked
Gryphon Capital (ASX:GCI) is paying 1.48 cents unfranked
Integral Diagnostics (ASX:IDX) is paying 3.5 cents fully franked
Jumbo Interactive (ASX:JIN) is paying 20 cents fully franked
Metrics Income (ASX:MOT) is paying 1.86 cents unfranked
Metrics Master (ASX:MXT) is paying 1.69 cents unfranked
Probiotec Limited (ASX:PBP) is paying 3.5 cents fully franked
Pengana Int Equ Ltd (ASX:PIA) is paying 1.35 cents fully franked
Peoplein Limited (ASX:PPE) is paying 7 cents fully franked
Platinum Asset (ASX:PTM) is paying 7 cents fully franked
REA Group (ASX:REA) is paying 83 cents fully franked
Reckon Limited (ASX:RKN) is paying 2.5 cents fully franked
SG Fleet Group Ltd (ASX:SGF) is paying 7.271 cents fully franked
Shape Aust Corp Ltd (ASX:SHA) is paying 6.5 cents fully franked
TABCORP Holdings Ltd (ASX:TAH) is paying 1 cents fully franked
Teaminvest Private (ASX:TIP) is paying 0.3 cents fully franked
Treasury Wine Estate (ASX:TWE) is paying 17 cents fully franked
Woodside Energy (ASX:WDS) is paying 125 cents fully franked
Whitehaven Coal (ASX:WHC) is paying 42 cents fully franked
Woolworths Group Ltd (ASX:WOW) is paying 58 cents fully franked

Dividends payable

Abacus Group ABG)
Carindale Property Trust (ASX:SCDP)
Charter Hall Group (ASX:SCHC)
Charter Hall Retail REIT (ASX:SCQR)
Elanor Commercial Property Fund (ASX:SECF)
Elanor Investors Group (ASX:SENN)
FAR Ltd (ASX:SFAR)
FSA Group Ltd (ASX:SFSA)
GDI Property Group (ASX:SGDI)
GPT Group (ASX:SGPT)
Growthpoint Properties Australia (ASX:SGOZ)
Kelly Partners Group Holdings Ltd (ASX:SKPG)
Liberty Financial Group Ltd (ASX:SLFG)
Mirvac Group (ASX:SMGR)
Region Group (ASX:SRGN)
Scentre Group (ASX:SSCG)
Stockland Corp Ltd (ASX:SGP)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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