Recovery rally sends S&P 500 back above 3,100Dow +527.24 at 26269.89, Nasdaq +74.54 at 9682.94, S&P +42.05 at 3122.74 [BRIEFING.COM] The S&P 500 extended its recovery rally by 1.4% on Wednesday, as the latest data continued to depict signs of a turnaround in the economy. The Dow Jones Industrial Average (+2.1%) and Russell 2000 (+2.4%) rose more than 2.0%, while the Nasdaq Composite (+0.8%) struggled to keep pace. Specifically, the ADP Employment Change Report estimated 2.76 million private-sector jobs were lost in May versus consensus estimates that were closer to 9.0 million. The ISM Non-Manufacturing Index rebounded to 45.4% in May (Briefing.com consensus 44.0%) from 41.8% in April, which indicated a decelerating pace of contraction. Those weren't good numbers, but they corroborated the market's thinking that things will improve as the economy continues to reopen. This outlook continued to fuel the big rebounds in the beaten-down cyclical sectors, as well as foreign equities, some of which have also been aided by talks of fiscal stimulus. Within the S&P 500, the industrials (+3.9%), financials (+3.8%), and energy (+3.1%) sectors advanced the most and carried the benchmark index back above the 3100 level. The continued rise in oil prices ($37.56/BBL, +0.46, +1.3%) following an unexpected decline in weekly crude inventories was an added benefit for energy stocks. The health care sector (-0.2%) closed lower. In corporate news, Lyft ($LYFT 34.44, +2.76, +8.7%) said rides were up 20% in May versus April (but down 70% yr/yr), while Zoom Video ($ZM 223.87, +15.79, +7.6%) provided impressive quarterly results and guidance. Safe-haven assets were out of favor amid the bullish bias in stocks. Gold futures declined 1.7% to $1704.90/OZT, the U.S. Dollar Index declined 0.4% to 97.28, and the 10-yr yield rose eight basis points to 0.76%. The 2-yr yield increased three basis points to 0.19%. Separately, an interesting report from The Wall Street Journal indicated that several executives from the poultry industry were indicted on allegations of price fixing. Shares of Tyson Foods ($TSN 60.10, -2.40, -3.8%) fell into negative territory following the report. Reviewing Wednesday's economic data: The ISM Non-Manufacturing Index rebounded to 45.4% in May (Briefing.com consensus 44.0%) from 41.8% in April. The dividing line between expansion and contraction is 50.0%.The key takeaway from the report is that the pace of contraction in the non-manufacturing sector decelerated in May. Things still aren't good in terms of business activity, but they were evidently considered by respondents to be less bad than what was seen in April.The ADP Employment Change Report estimated 2.76 million private-sector jobs were lost in May versus consensus estimates that were closer to 9.0 million.New orders for manufactured goods declined 13.0% m/m in April, as expected, following a downwardly revised 11.0% decline (from -10.3%) in March.The key takeaway from the report is that the weakness was driven by durable goods orders, which declined 17.7%, hurt by a 48.3% decline in transportation equipment orders. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, revised Q1 figures for Productivity and Unit Labor Costs, and the Trade Balance report for April on Thursday. Nasdaq Composite +7.9% YTDS&P 500 -3.3% YTDDow Jones Industrial Average -8.0% YTDRussell 2000 -13.0% YTD Market Snapshot Dow26269.89+527.24(2.05%)Nasdaq9682.94+74.54(0.78%)SP 5003122.74+42.05(1.36%)10-yr Note -29/320.755NYSEAdv 2342 Dec 556 Vol 1.1 blnNasdaqAdv 2248 Dec 1031 Vol 4.6 bln Industry Watch Strong: Financials, Energy, IndustrialsWeak: Health Care Moving the Market -- Recovery rally lifts S&P 500 back above the 3100 level-- Relative strength in the cyclical sectors-- Better-than-feared economic data regarding the labor market and services sectorStocks end higher on recovery hopes, shake off civil unrest worries Stocks continue to find support from recovery hopes as the economy reopens. Massive stimulus, both implemented and planned, keeps providing a strong tailwind for stocks despite the escalating spat between the U.S. and China and civil unrest that continues in the form of protests in major American cities. The latest turn in the fight with China - the Trump administration's imposition of an order banning Chinese passenger carriers from flying to the United States starting in mid-June - did not slow the rally that has kicked off June. ECONOMIC EVENTS: In U.S. data, ADP reported private payrolls declined 2.76M in May, which wasn't as weak as the market feared. Markit's final services PMI was revised up to 37.5 from the 36.9 flash reading for May. The ISM services index rose 3.6 points to 45.4 in May, rebounding from an 11-year low of 41.8 in April. Factory orders plummeted a record 13.0% in April after plunging 11.0% in March, though this drop was also better than feared. TOP NEWS: Shares of Zoom Video ($ZM) closed 7.6% higher after what Wall Street analysts called the "greatest quarter in enterprise software's history" and "easily the most stunningly positive quarter" in 18 years. Due to accelerating adoption in the work from home environment, all metrics showed material upside against consensus expectations and the company's fiscal year revenue guidance doubled the consensus estimate. Crowdstrike ($CRWD), another beneficiary of the shift to a work from home environment, said along with its report of better than forecast results that it believes "the rapid shift to a remote workforce has helped increase" its leadership. Shares of Crowdstrike rose 6.3% following last night's quarterly report from the cybersecurity company. Warner Music Group ($WMG) priced its 75 million share initial public offering at $25 per share, valuing the record label at $12.75B. The stock opened at $27. In other IPO news, Pliant Therapeutics ($PLRX) priced 9 millions shares at $16, which was the high end of the expected range, and then opened for trading at $25 per share. Meanwhile, Moderna ($MRNA) gained after The New York Times reported that the company is among the five finalists selected by the Trump administration as the most likely to produce a vaccine for COVID-19. The other finalists include AstraZeneca ($AZN), Johnson & Johnson ($JNJ), Merck ($MRK) and Pfizer ($PFE). On the flip side, Inovio ($INO) and Novavax ($NVAX) fell a respective 13.3% and 10.9% as the White House list doesn't include either company. Additionally, shares of Snap ($SNAP) were fractionally lower after The Verge reported that the company said President Trump's verified account on the social media platform will no longer be promoted within the app after management concluded that the president's tweets over the weekend promoted violence. In response, Bloomberg reported that the Trump campaign has accused the social media company of attempting to "rig" this year's election. MAJOR MOVERS: Among the noteworthy gainers was Cheesecake Factory ($CAKE), which rose 16.3% after announcing approximately 25% of the company's restaurants across its concepts, including 34 Cheesecake Factory restaurants, have reopened dining rooms with limited capacity. Also higher was Criteo ($CRTO), which gained 19% after it reported that May revenue was "better than expected." Among the notable losers was Roku ($ROKU), which slid 6.2%, with Stephens analyst Kyle Evans saying that Best Buy’s ($BBY) TCL Android TV models could be pressuring the stock. Also lower was Pilgrim's Pride ($PPC), which plunged 12.4% after a federal grand jury in the U.S. District Court in Denver, Colorado, returned an indictment against four executives - including Pilgrim's CEO Jayson Penn - for their role in a conspiracy to fix prices and rig bids for broiler chickens.Source: (Briefing.com)(theFly.com) Disclosure: I may trade in the ticker symbols mentioned, both long or short. 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