US open: Stocks higher despite weaker-than-expected payrolls data
Wall Street stocks were higher after the bell on Wednesday despite the release of some much weaker-than-expected payroll data.
As of 1535 BST, the Dow Jones Industrial Average was up 0.88% at 28,898.75, while the S&P 500 was 0.71% firmer at 3,551.71 and the Nasdaq Composite started out the session 0.26% stronger at 11,970.67.
The Dow Jones opened 253.09 points higher on Wednesday, carrying on gains recorded in the previous session.
Sentiment got a boost after Swiss pharma giant Roche revealed that it would be rolling out a new rapid antigen test throughout Europe before the end of the month, with the company also planning to apply for an emergency use authorisation from the US Food and Drug Administration.
However, news that Donald Trump and FDA head Stephen Hahn's much-touted plasma treatment did not appear to be effective against the coronavirus caused some to taper their expectations.
The US government also said overnight that it will not participate in a global initiative to develop, manufacture and equitably distribute a vaccine for Covid-19 due to the World Health Organization's involvement.
The Covid-19 Vaccines Global Access Facility (Covax) is a plan developed by the WHO, along with the Coalition for Epidemic Preparedness Innovations and Gavi, the Vaccine Alliance, in which 170 countries were in talks to participate.
But despite concerns around the move, the National Institute of Allergy and Infectious Diseases' director Dr Anthony Fauci said the pandemic could very well be brought to an end sooner than expected if any other multiple companies attempting to achieve a cure were able to produce outstanding preliminary results.
When discussing many of the trials, Fauci said: "The data is so good right now that you can say it's safe and effective."
Also in focus, Treasury Secretary Steven Mnuchin revealed both he and House Speaker Nancy Pelosi had restarted talks, leaving market participants optimistic of the potential for another fiscal stimulus plan to help unemployed Americans.
On the macro front, mortgage applications fell 2% in the week ended 28 August, according to the Mortgage Bankers Association, marking the third consecutive period of decrease. Applications to refinance a home loan slipped 3.1% and homebuyer mortgage applications went down 0.2% despite the average fixed 30-year mortgage rate decreasing three basis points to 3.08%.
Elsewhere, hiring in the US increased at a slower-than-expected pace last month, according to consultancy ADP's non-farm private-sector payrolls reports. ADP's report showed a 428,000 gain in employment, far less than the 900,000 increase that economists had forecast.
Still on the data front, the ISM New York current business conditions index dropped to 42.9 in August from the previous month's 15-month high of 53.5, pointing to a steep deterioration in business conditions throughout the state as the economic recovery following the easing of Covid-19 restrictions dissipated as a result of a resurgence in new cases.
Lastly, factory orders in the US jumped 6.4% month-on-month in July, matching June's upwardly revised increase and slightly ahead of expectations of a 6% rise.
Turning now to the Fed, Federal Reserve Bank of New York's John Williams will deliver a speech shortly, while governors Loretta Mester and Neal Kashkari will also deliver comments at 1700 BST and 1900 BST, respectively.
In corporate news, Macy's shares were higher at the bell after the retailer beat forecasts on the back of a 53% jump in online sales, while Tesla shares advanced in early trading after falling 4.7% in the previous session.
Draft Kings shares surged more than 10% at the open after adding NBA legend Michael Jordan as an adviser, while Jack Daniels parent Brown-Forman surged after beating first-quarter earnings expectations.