Stock indexes continue recovery efforts

WEDNESDAY'S MARKET WRAP-UP

Market Snapshot for October 5, 2011 (8:45 p.m. ET):

Closing Prices: DOW 10,939.95 (+131.24, +1.21%), S&P 500 1,144.03 (+20.08, +1.79%), NASDAQ 2,460.51 (+55.69, +2.32%), Nikkei 225 8,530.63 (+147.65, +1.76), DAX 5,473.90 (+256.32, +4.91%), FTSE 5,102.17 (+157.73, +3.19%)

OIL 79.58, GOLD 1,638.50, SILVER 30.35

EURO 1.334, YEN 76.74, BRITISH POUND 1.5468, U.S. DOLLAR INDEX 79.425

Market Rallies 4% Off Lows

The market continued its recovery efforts in Wednesday's session after breaking to new yearly lows earlier the previous day. This flush came after a week of selling that ended with a shift in the momentum of that selling on Tuesday morning and a strong afternoon rally into Tuesday's closing bell. When the market turns so quickly, however, it tends to have a difficult time sustaining that momentum and this is what we've seen in the index futures since then.

The futures congested afterhours on Tuesday evening and continued their range-bound trade into the early morning on Wednesday. A break higher came shortly after 6:00 a.m. ET, before the latest economic data hit the wires in the U.S. Although the original attempt to push higher had similar momentum as the prior afternoon, it was unable to sustain the pace and pulled back gradually into the opening bell. This created an upside continuation pattern that triggered out of 10:00 a.m. ET.

Dow Jones Industrial Average

Jobs Data to Take Center Stage

The premarket ADP employment change report had little effect upon price action despite beating most estimates. It showed that private payrolls were up 91,000 last month. Most analysts had expected somewhere between a 45,000-70,000 increase. This marks the first of the employment data for the week, but the most widely anticipated data is due out on Friday with September's non-farm payrolls and the latest unemployment rate. Analysts are looking for a 90,000 increase in September. The unemployment rate is expected to remain unchanged at 9.1% with very little net gain in the real employment data.

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