S&P 500; US Indexes Fundamental Daily Forecast – Volatility Returns; Disney Reports after Close

U.S. stock indexes are trading higher at the mid-session with the blue chip Dow Jones Industrial Average and benchmark S&P 500 Index notching record highs on the back of a surge in financial stocks.

At 1744 GMT, the Dow is trading 22129.97, up 11.55 or +0.05%, the S&P 500 Index is at 2484.06, up 3.15 or +0.13% and the tech-based NASDAQ Composite is at 6406.05, up 22.28 or +0.35%.

Volatility seems to have returned to the stock market after being absent for almost two weeks. Volatility to the upside was fueled by a bullish government jobs report. Volatility to the downside was triggered by a report that North Korea has a nuclear weapon that can fit in its missiles.

Stocks surged after the U.S. Labor Department reported a record high number of job openings in June. The price surge took out Friday’s high which was reached on the back of robust U.S. Non-Farm Payrolls data for July.

According to the Bureau of Labor Statistics, the number of openings was at 6.2 million on the last business day of the month, a record high. This represents an increase from 5.7 million on the last business day of May.

Further research shows that the June number is the highest reported since the Labor Department began tracking the series in December 2000. The previous monthly job openings record was set in July 2015.

The Labor Department report went on to say that for the month of June, reported hires and separations were little changed at 5.4 million and 5.2 million respectively.

The news triggered a sharp rise in U.S. Treasury yields which lead to a jump in financial sector stocks. This move pulled up the Dow and the S&P 500.

Stocks retreated from their highs after a U.S. military intelligence official said North Korea has successfully created a miniaturized nuclear weapon designed to fit inside missiles. The Washington Post first reported the development Tuesday, citing a confidential intelligence assessment.

Trading could get volatile into the close with Dow component Disney set to report quarterly results after the close. Investors will be looking for specifics on the company’s cable entities, especially ESPN.