[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed strength despite weak employment data, buoyed by strong consumer indicators and expectations for economic stimulus measures.
On the 5th (local time), the Dow Jones Industrial Average rose 373.05 points (1.39%) to close at 27,201.52, the S&P 500 index increased by 21.26 points (0.64%) to 3,327.77, and the Nasdaq index closed up 57.23 points (0.52%) at 10,998.40.
The Nasdaq even surpassed the 11,000 mark during the session, and the S&P 500 came within 2% of its all-time high recorded last February.
According to the ADP National Employment Report released that day, private sector employment in July increased by only 167,000, raising concerns. This was far below the expected increase of 1 million.
The Institute for Supply Management (ISM) announced that the July Services Purchasing Managers' Index (PMI) rose from 57.1 last month to 58.1. This was higher than the market expectation of 55.0. It was the highest level in about 16 months since March last year, defying expectations of weakness amid the resurgence of COVID-19.
According to IHS Markit, the final US Services PMI for July was 50.0, up from the previous month's confirmed 47.9. It also exceeded the market expectation of 49.6.
The possibility of an agreement on an economic stimulus bill also boosted investor sentiment. There were expectations that the White House and the Democratic Party would make significant concessions to reach an agreement by the weekend. Reports that many Republican senators requested the inclusion of a $25 billion airline support package in the new stimulus bill lifted airline stocks.
However, White House Chief of Staff Mark Meadows pressured the Democrats by stating that if no agreement is reached by the weekend, no negotiations will take place.
By stock, Walt Disney rose 8.8% despite announcing a large loss the day before, as the results were better than expected and the milestone of surpassing 100 million streaming service subscribers provided positive momentum.
December delivery gold closed at $2,049.30 per ounce, up 1.4% ($28.30) from the previous day, marking another record high. Following the first breakthrough of the $2,000 mark the day before, the $2,050 level is also imminent.
West Texas Intermediate (WTI) crude oil closed up 1.2% ($0.49) at $42.19 per barrel.
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