The Closing Look

Stocks rallied on Wednesday as investors digested the latest round of economic data. Before the open, the composite Mortgage Application index rose 2.9% vs the prior reading of -0.7%. Mortgage rates fell to the lowest level since July and the average interest rate on a 30-year fixed rate conforming loan is 3.62%. The ADP Employment Report, which measures private payrolls data, came in at 154,000, easily beating the Street’s estimate for 170,000. The PMI Service index came in at 52.3, higher than the prior reading of 51.0. Factory orders grew by 0.2%, beating the -0.2% forecast. Finally, the ISM service index came in at 57.1, beating estimates for 52.9.

Gary’s Thoughts: Good day led by oils and financials. ..but RANGEBOUND WE STAY. Now…on to preparng for a hurricane.