The ADP result will be the driver for Wednesday trading. A better than expected reading would most probably boost the markets 100 points at the least.
China growth slows down, however the country is still growing at a 10% rate. So recent economic data should not be the main focus. Recently in June, Alcoa’s CEO said that he see 10% growth in the aluminum industry. He expresses optimism that US would focus on the lightweight metal for new car models.
Looking at the 40% surge of TESLA stock yesterday amid its IPO debut, I strongly believe that consumers and investors alike love energy saving cars.
The consensus for the ADP report is now at 50k. We would need 70k for a crazy rally to 10500 again.
If ADP comes out bad, the market would most probably tank abit before making a sudden surge upwards. This is because, investors are already pricing in the worst case scenarios. The market is priced as if Greece is going to default this year, that Spain is going to disappear….
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