Wall Street lifted by bank and tech stocks, robust ADP data
The Dow Jones Industrial Average hit a new high on Wednesday, leading gains in the three major Wall Street indexes, driven by a jump in financial and technology stocks and a robust monthly private payrolls report.
Most of the 11 major S&P sectors were higher, also benefiting from signs that Italy would cut its budget deficit and lower its debt in the coming years.
Financials, which have lagged this year, rose 0.7 percent, mirroring the gains in technology stocks.
U.S. private payrolls recorded their biggest increase in seven months in September, the ADP National Employment Report showed, pointing to sustained labor market strength and a solid print for Friday`s more comprehensive non-farm payrolls data.
"The market is reacting favorably to the payrolls news and a lot of eyes are on the jobs report on Friday. People are looking forward to the wages with Amazon raising its minimum wage," said Ryan Nauman, market strategist at Informa Financial Intelligence in Zephyr Cove, Nevada.
Nauman said Amazon.com raising its minimum wage to $15 could pressure other retailers to follow, which would make the wage growth number in Friday`s jobs report of particular interest.
The strong ADP data pushed the yield on the U.S. 10-year Treasury note higher, helping S&P bank stocks rise 1 percent.
Also underscoring the economy`s vibrancy was a report from the Institute for Supply Management showing its non-manufacturing activity index rose more than expected in September.
At 11:30 a.m. EDT, the Dow was up 146.65 points, or 0.55 percent, at 26,920.59, the S&P 500 was up 12.30 points, or 0.42 percent, at 2,935.73 and the Nasdaq Composite was up 34.23 points, or 0.43 percent, at 8,033.77.
The Dow is closing on the 27,000 mark and the S&P is roughly 0.2 percent shy of its all-time high.
Among technology stocks, Intel gained 1.3 percent, rising for the second day, with gains being attributed to a research firm`s prediction that the chipmaker could beat Wall Street`s targets for the fourth quarter.
The energy index rose 0.5 percent, the most among the 11 sectors, boosted by a rise in oil prices.
General Motors rose 2.1 percent after Honda Motor said it would invest $2 billion over 12 years in the U.S. carmaker`s Cruise self-driving unit.
Michael Kors rose 2.3 percent after Citi upgraded the stock on expectations its recent purchase of Italian fashion house Versace would boost performance.
Advancing issues outnumbered decliners by a 1.69-to-1 ratio on the NYSE and a 1.54-to-1 ratio on the Nasdaq.
The S&P index recorded 26 new 52-week highs and eight new lows, while the Nasdaq recorded 26 new highs and 50 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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