Wall Street is trading higher today as investors remain optimistic that the Federal Reserve is preparing for a new round of economic stimulus packages. According to Automatic Data Processing (ADP), the private sector added 91,000 jobs in August, led mainly by service companies and small-businesses. Economists, however, were expecting an increase of 100,000. The U.S. Department of Commerce indicated that factory orders rose 2.4 percent in July, beating economist projections of 2.0 percent. Stocks dipped slightly when it was announced that the U.S. Justice Department is seeking to block the AT&T (T) $39 billion acquisition of T-Mobile, which is owned by Deutsche Telekom AG (DTEGY). The deal would put immense pressure on competitors, from a price standpoint and stymie future product innovation for consumers. The deal had received staunch opposition from other telecoms like Sprint (S), but received support from broader tech companies Microsoft (MSFT) and Research In Motion (RIMM). Telecom stocks are trading lower on the news, with AT&T down over 4 percent and Deutsche Telekom is down over 6 percent. Gold and oil prices are both edging higher as well, but only up less than half a percent.
Major U.S. Stock Indices
DJIA: 11,650.92 (+0.79 percent)
S&P 500: 1,223.79 (+0.90 percent)
NASDAQ: 2,591.27 (+0.59 percent)
Russell 2000: 732.43 (+0.60 percent)
In other news:
- Despite the nice run the stock market has had the past two weeks, investors should remain cautious with the arrival of September, otherwise known as the worst month for stocks. [Marketwatch]
- This should add fuel to the corporate tax fire: 25 of the top 100 U.S. companies paid more in CEO compensation than they did in taxes in 2010. [CNBC]
- President Barack Obama has requested a joint session with Congress on September 7 to outline his proposal on growing U.S. jobs. [Bloomberg]
- Is it really any surprise that Apple’s (AAPL) retail strategy resembles that of most high-end brand name stores? [The Street]
- Four widely respected fund managers that have made investors feel better about their own portfolios in 2011. [The Street]
Check back as more news develops.