Wall Street rallied near session highs in mid-day trading on Wednesday, ahead of the G20 summit on Thursday that is expected to include talks for military action in Syria.
Jason A. Weisberg of Seaport Securities spoke to the International Business Times from the floor of the New York Stock Exchange about market expectations ahead of the Group of 20 leaders gathering in Russia.
“I imagine that whatever comes out of the G20 will really just be a mere shadow of what the true focus will be, and that what’s going on in Syria and how the U.S. government deals with that crisis going forward,” said Weisberg. “There seems to be a lot of mixed opinion on it, and I think that’s reflecting itself in the marketplace today.”
U.S. stocks opened flat on Wednesday, but managed to edged higher following motor vehicle sales that showed August’s sales will top 16 million vehicles on a seasonally adjusted annualized basis, which would be the first time U.S. sales topped that level since November 2007.
While auto manufactures in the U.S., such as General Motors Co, Toyota, Nissan Motor Co, Chrysler Group LLC and Ford, reported better-than-expected results, Moody's Investors Service Inc. said it expects four of Europe's largest car manufacturers, including Ford Europe, GM Europe, Fiat Chrysler and Peugeot-Citroen, to lose a combined five billion euros, or $6.6 billion, in the region in 2013.
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“I think the European economy seems to be rebounding, and I don’t think the whole European economy you can pin the success or failure on that economic recovery on the car market,” said Weisberg.
On Friday, the Labor Department is scheduled to release its highly anticipated jobs report for the month of August, the last major U.S. employment data ahead of the Federal Reserve’s September 17-18 meeting. Speculation has swirled in recent months if the next FOMC meeting will reveal when the central bank will begin to taper its $85 billion-a-month bond-buying program.
“I think that the jobs number, and we’re discussed this previously, is a very grey number,” Weisberg said. “The number changes, it’s revised, and I think anytime you take a hard data point and you allow it to be revisable, you don’t really have to put a lot of faith in that number.”
On Wednesday afternoon, the Federal Reserve is scheduled to release its latest assessment of the U.S. economy in its Beige Book at 2 p.m. Eastern.
The Dow Jones industrial average gained 110.95 points or 0.75 percent, to 14,944.91. The S&P 500 rose 14.05 points or 0.86 percent, to 1,653.72. The Nasdaq Composite added 33.94 points or 0.94 percent, to 3,646.51.