The Closing Look

Stocks fell after most of Wednesday’s economic data strengthened the argument for another rate hike. ADP, the country’s largest private payrolls report, said private U.S. employers added 177k new jobs, beating estimates for 175k in July. Weekly mortgage applications rose by +2.8%, which was higher than last week’s reading of -2.1%. Elsewhere, pending home sales jumped +1.3%, beating estimates for +0.6%. Not all the data beat estimates, the Chicago PMI came in at 51.5, missing estimates for 55.2. In other news, crude oil sliced below its 50 DMA line after the EIA report showed inventories rose.

Gary’s Thoughts: Another drop but somewhat controlled but a bunch of areas stated in trouble. As long as financials and semis keep the bid, major indices should be ok.