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U.S stocks rise on jobs data, Fed uncertainty; Dow gains 0.38%

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Investing.com - U.S. stocks rose on Wednesday after private-sector jobs data beat expectations.

Markets closed early ahead of the U.S. Independence Day holiday.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.38%, the S&P 500 index ended up 0.08%, while the Nasdaq Composite index rose 0.30%.

Better-than-expected jobs data coupled with soft service-sector data sent stocks rising by fueling sentiments that the economy is on the mend but still requires monetary stimulus injections from the Federal Reserve.

Payroll processor ADP reported earlier that the U.S. private sector added 188,000 jobs in June, beating expectations for an increase of 160,000.

Separately, the U.S. Department of Labor said the number of individuals filing for initial unemployment assistance last week fell by 5,000 to 343,000, slightly better than expectations for a drop of 3,000 to 345,000.

Separate data showed that service-sector activity in the U.S. grew at a slower rate than expected in June.

The Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 52.2 in June from 53.7 in May, compared to expectations for an increase to 54.0.

Collectively, the numbers painted a picture of an economy that continues to recover though will still enjoy the support of Federal Reserve stimulus programs such as a monthly USD85 billion bond-buying program that pushes up stock prices as a side effect.

Investors largely looked past events in Egypt as stock markets closed early.

Leading Dow Jones Industrial Average performers included Boeing, up 1.37%, Cisco, up 1.11%, and IMB, up 0.95%.

The Dow Jones Industrial Average's worst performers included Alcoa, down 1.15%, Caterpillar, down 0.78%, and Bank of America, down 0.54%.

European indices, meanwhile, finished lower.

After the close of European trade, the EURO STOXX 50 fell 1.25%, France's CAC 40 fell 1.08%, while Germany's DAX 30 finished down 1.03%. Meanwhile, in the U.K. the FTSE 100 finished down 1.17%.

U.S. markets will be closed on Thursday for the U.S. Independence Day holidays.

On Friday, the U.S. will release its June report on nonfarm payrolls, the unemployment rate and average hourly earnings.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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