It is evident from Thursday’s price action with the S&P 500 index closing at a new all-time closing high, that there is extreme optimism heading into Friday’s jobs report. And why not? If the number is good, ther the economy is doing just fine. If it is bad, the Fed will not be raising rates and more stimulus is yet to come.
The index caught a bid off the 6:00 PM EST open, only trading 1 handle below Thursday’s close (4393.75), with the premarket low being 4393.75. The index could not even breach 4400 during the regular session.
For most of the day, the rally was capped at the former all-time closing high, which was Wednesday’s high (4415). However, a late surge of buyers into the close propelled the index to a new all-time closing high at 4220.25, which was higher by 25.50 handles from Wednesday’s closing price.
It was a broad-based rally with only two of the top components in the index lagging behind, the first one being Apple Inc. (NASDAQ: AAPL) which was flat, and United Health Group Inc. (NYSE: UNH). The latter found profit takers after making a new all-time high, but failed to post a new all-time closing high on Wednesday.
PreMarket Prep Stock Of The Day: Uber Technologies Inc.
After being punished after the Lyft Inc. (NYSE: LYFT) Q2 report, the “buy the crowd” was back in full force after Uber’s own Q2 report.