Why Is The Stock Market Up Today?
Here are a few reasons that explain why the market is up today:
Jobless claims came in lower than expected at 323K, down from 344K last week. This is the lowest level since the government shutdown which lifted claims in the first half of October. Jobless claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. Less people filing for jobless claims indicates the economy is be getting better under most circumstances.
Producer Price Inflation
Producer Price Inflation, which measures the average change over time in the prices received by domestic producers of goods and services fell 0.2% M/M, but is up 0.3% Y/Y. Overall, inflation has declined, giving more reason for the Federal Reserve to continue its massive bond buying program.
PMI Manufacturing Index Flash
The PMI manufacturing index is a survey of selected companies that give an indication of what will be happening in the private sector in the future, such as output, new orders, stock levels, employment and prices across the manufacturing sectors. This forward looking indicator came in much higher than expected at 54.3 (anything above 50 is positive outlook).
Investors like to jump in when they feel like they are getting a good deal. The market finally had a quick pull back, so investors felt it would be a good time to jump on the band wagon for the ride up. This is a partial explanation why the market is up, in addition to the positive economic indicators.
Of course, there are many other reasons why the market is up, these are just a few to think about.