By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market edged higher on
Wednesday, adding to three days of gains and taking the S&P 500
to an intraday record.
Markets had a muted reaction to the fastest pace of
private-sector hiring in three months in early trade. Investors
await a report on factory orders for February, due at 10 a.m.
Eastern Time.
The S&P 500 (SPX), after an indecisive start, inched higher
and notched an intraday record. The benchmark index was up less
than a point at 1,884.39.
The Dow Jones Industrial Average (DJI) gained 11 points, or
0.1%, to 16,544.13.
The Nasdaq Composite (RIXF) added 10 points, or 0.3%, to
4,279.31.
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action.
In economic news, private-sector-employment gains picked up in
March, with employers adding the most jobs in three months, and
quicker hiring may be ahead, Automatic Data Processing Inc.
reported Wednesday.
ADP said private-sector employers added 191,000 jobs last month,
up from 178,000 in February. A prior estimate pegged February's
increase at 139,000.
While some economists use ADP's number to get a feeling for the
official non-farm payrolls data, it is not always a reliable
indicator according to Ian Shepherdson, chief economist at Pantheon
Macroeconomics.
"We no longer view ADP as a useful advance indicator of the
official payroll numbers. Since ADP was revamped in October 2012 it
has clearly tended to lag movements in the official numbers by a
month. We still look for 250,000 jobs gain on Friday," wrote
Shepherdson in an emailed comments.
Investors await a report on factory orders for February, due at
10 a.m. Eastern Time. Economists polled by MarketWatch forecast
factory orders rose 1.3% in February, after a 0.7% drop in
January.
Two Federal Reserve officials are due to speak on Wednesday.
Atlanta Fed President Dennis Lockhart, who isn't a voting member of
the central bank's policy committee, will speak about the economic
outlook to the Miami Chamber of Commerce at 12:55 p.m. Eastern. St.
Louis Fed President James Bullard, also not a voting member, will
meet with reporters at 4 p.m. Eastern.
Among individual stocks, Monsanto Co. (MON), shares fell
slightly after the agricultural company reported its second-quarter
earnings. The company said its fiscal second-quarter earnings grew
13% thanks to continued strength in its soybean seed sales as well
as improved margins. Results beat expectations.
Shares of MannKind Corp. (MNKD), which surged 100% in
after-hour's trading on Tuesday, was up another 83% to $7.31 on
news a Food and Drug Administration advisory panel recommended
approval of the biopharmaceutical company's inhaled diabetes drug
Afrezza.
General Motors Co. (GM.XX) rose 1% as Chief Executive Mary Barra
returns to Capitol Hill to continue her testimony on the company's
handling of a massive recall linked to an ignition defect. GM said
on Tuesday that U.S. sales in March rose 4% to 256,047
vehicles.
Nomura analysts initiated coverage of GM on Wednesday with a
reduce rating, alongside a neutral rating for Ford Motor Co. (F).
"We believe increasing macroeconomic headwinds will affect Ford and
GM's profitability negatively relative to very high expectations
for a FY15 earnings-per-share recovery," said analyst Harald
Hendrikse in a note.
Ford shares were 0.6% lower.
Shares of Intuitive Surgical Inc. (ISRG) rose 1.5% after surging
11% on Tuesday after the company said it received the go-ahead from
the U.S. Food and Drug Administration for its da Vinci Xi Surgical
System.
In overseas markets, the Stoxx Europe 600 index logged light
gains as investors awaited U.S. data and Thursday's European
Central Bank meeting. Asia stocks chased up Wall Street gains, with
a 1% rose for Japan's Nikkei Average and more modest advances
elsewhere. A weaker yen (USDJPY) contributed to the gains on the
Nikkei. Gold (GCM4) rose 1%, while oil (CLK4) was flat.
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