Stocks rally on hopes of an interest rate cut – Here’s what you need to know…

Stock Market Update Wednesday, June 5th, 2019

Stocks finished higher for the 2nd day in a row, on hopes that the Fed will cut rates.

Yesterday, Fed Chair Powell said that they will do what it takes to”sustain expansion” in the current market environment.

And today, some bad private sector employment data helped the possibility of a rate cut a little more.

The May ADP Non-Farm Employment report showed that 27,000 jobs were added vs. the 170,000 expected. This was the worst report for private sector jobs since March 2010!

Stocks were higher at the open and pulled back slightly in the morning. But a rally starting around 11 am ET helped lift the major indices to session highs. Then a late push in the last 20 minutes of trading helped stocks finish at highs of the day.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.8% gain. Up 23 points, the S&P ended at 2,826.
  • The DOW ended higher by 0.8%. Adding 207 points, the DOW closed at 25,540.
  • The NASDAQ was up 0.6%. With a 48 point gain, the NASDAQ finished at 7,575.

Crude Oil (CL) finished near 5-month lows after another big drop. Down 4.0%, CL ended at $51.34 a barrel.  Today’s Crude Oil Inventories showed a 6.8 million barrel increase in U.S. stockpiles compared to the 1.7 million barrel decrease that was expected.

Apple (AAPL) was up nicely today after CEO Tim Cook reported that Apple hasn’t been targeted by China. On Saturday China raised tariffs on $60 billion worth of U.S. goods. But Cook said that China hasn’t targeted Apple, and he doesn’t see it happening. Apple finished the day with a 1.6% gain.

Better than expected earnings helped boost Salesforce (CRM) and Campbell Soup (CPB). CRM was up 5.1% and CPB rallied 10%.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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