By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market pushed higher on
Wednesday, set for a fourth day of gains, with the S&P 500
notching an intraday record in early trade.
The market's reaction was muted after a pair of
better-than-expected economic reports. Private-sector hiring in
March picked up to the fastest pace in three months while factory
orders rose in February. Headline numbers on both were stronger
than expected.
The S&P 500 index (SPX) edged higher, but traded in a narrow
range. The benchmark added 3 points, or 0.2% to 1,888.80.
The Dow Jones Industrial Average (DJI) was 18 points, or 0.1%,
higher at 16,546.86.
The Nasdaq Composite (RIXF) added 7 points, or 0.2%, to
4,275.05.
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action.
"Today's ADP numbers should be taken not in isolation but as a
part March data package -- together with the ISM and jobless claims
figures, they indicate a nice progression growing at moderate
rate," said Jim Russell, senior equity strategist at U.S. Bank
Wealth Management.
"It appears that cold winter weather and not something
fundamental held back the growth and resulted in weakness," Russell
added.
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 nonfarm 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.
Separately, orders for goods produced in U.S. factories rose
1.6% in February, the U.S. Commerce Department said Wednesday.
Orders for durable goods -- products meant to last at least three
years -- rose 2.2% in February. Orders for nondurable goods
increased 1%.
In an interview on Bloomberg Radio on Wednesday, St. Louis Fed
President James Bullard said that he expects the first rate hike to
come in the first quarter of 2015, though he conceded that he's
ahead of most of his colleagues.
Atlanta Fed President Dennis Lockhart, who is not 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.
Among individual stocks, Monsanto Co. (MON) shares rose 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-hours trading on Tuesday, was up another 76% to $7.09 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 0.4% as Chief Executive Mary
Barra returned 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 0.7% higher.
Shares of Intuitive Surgical Inc. (ISRG) rose 3.8% 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 0.9%, breaking a 5-day losing streak,
while oil (CLK4) edged lower.
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