By Donna Kardos
U.S. stocks opened higher Wednesday morning as the lowest number
of monthly layoffs since March 2008 and an as-expected drop in
private-sector jobs encouraged investors ahead of the monthly jobs
report Friday.
Equities accelerated their gains after the Institute of Supply
Management's index of non-manufacturing activity unexpectedly slid
in October.
The Dow Jones Industrial Average (DJI) rose 103.91 points to
9,875.82. The S&P 500 (SPX) added 11.36 points to 1,056.78,
while the Nasdaq Composite (RIXF) rose 14.02 points to
2,071.34.
In other markets, crude oil and gold futures were both rising,
while the dollar fell against the euro but was higher against the
yen.
Treasurys fell, with the 2-year note dropping 2/32 to yield
0.94%, and the 10-year note sliding 8/32 to yield 3.499.
Walt Disney Co. (DIS), a Dow component stock, rose 2.7% after it
announced it got the go-ahead from China's central government to
pursue a plan to build a theme park in Shanghai.
Shares of Alcoa Inc. (AA) jumped 3%.
Other components of the Dow that rose more than 2% included
Merck (MRK) and Bank of America (BAC).
Kraft Foods Inc. (KFT) was the Dow's sole component in the red,
down 2.5% after reporting weaker-than-expected sales in the third
quarter and lowering its outlook for sales growth this year.
Wednesday's early gains contrast with the usual caution seen
ahead of the Federal Reserve's interest-rate decisions.
But stocks have already been in a slump lately, and Friday's
jobs report has become the bigger focus, since the Fed's upcoming
statement is expected to include no change in rates and perhaps
just a hint as to when they could change.
Expectations for the government's monthly jobs report Friday
rose Wednesday morning after payroll giant Automatic Data
Processing and consultancy Macroeconomic Advisors reported a
203,000 drop in private-sector jobs last month, on par with the
drop expected by economists and smaller than September's
decline.
In addition, outplacement firm Challenger, Gray & Christmas
said the number of layoffs announced by U.S. companies in October
totaled 55,679, down 16% from September and marking the lowest
reading since March 2008.
Among stocks in focus Wednesday, Con-Way fell 10% after the
freight-transportation reported third-quarter profit and revenue
below analysts' estimates. R.R. Donnelley & Sons (RRD) climbed
4.4%, as the Chicago printing-services company's profit excluding
items beat analysts' expectations.