The Nasdaq started a new month Wednesday at record highs while the rest of the market faltered.
Investors picked apart mixed messages on the economy - the monthly private hiring survey from ADP, came in much weaker than expected for August. On the other hand, manufacturing activity was surprisingly stronger last month, according to the Institute for Supply Management…with one main caveat - the employment component was weak. Both reports renewed focus on the Fed ahead of Friday's key government monthly jobs data.
The Dow dipped 48 points. The S&P 500 was up a point. The Nasdaq gained 50.
Shawn Cruz, senior market strategist at TD Ameritrade, says investors are rewarding tech companies for continuing to innovate.
"When you start seeing companies like Amazon coming out and announcing a partnership with a firm - that gets investors excited and they're comfortable now coming in and buying up those shares. You see Apple coming out and talking about getting into the satellite phone game and doing some other improvements to their Apple wallet. These companies are continuing to innovate, continuing to find new ways to grow revenue and ultimately profitability for their investors. That's what really makes people feel comfortable coming in and buying some of these names, even though we are up here at some of these all time highs."
Amazon is going on a hiring spree. CEO Andy Jassy told Reuters he's planning to hire 55,000 new tech and corporate workers in the coming months. Shares of Amazon finished higher.
It is not alone. Retail rival Walmart is planning to add 20,000 supply chain workers ahead of the holiday season. But shares of the discount retail giant finished the day with a loss.