Stocks rise after ISM data, euro down ahead of ECB meeting

Wed Jun 4, 2014 7:52pm EDT
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By Sam Forgione

NEW YORK, (Reuters) - U.S. shares rebounded on Wednesday after strong data on the U.S. services sector, while soft European economic data weighed on European equities and weakened the euro a day ahead of a closely watched European Central Bank policy meeting.

Better-than-expected U.S. services sector growth drove gains on Wall Street and boosted the S&P 500 to a record closing high, reversing earlier losses on an industry report showing weakness in the U.S. private-sector labor market. Yields on benchmark 10-year U.S. Treasury notes edged higher.

MSCI's all-country world index .MIWD00000PUS of equity performance in 45 countries rose 0.08 points, or 0.02 percent, to 422.12, while the pan-European FTSE Eurofirst 300 .FTEU3 index of regional shares closed flat at 1,374.75.

The Institute for Supply Management said its U.S. services sector index rose to 56.3 in May from 55.2 in April, topping expectations for a read of 55.5. A reading above 50 indicates expansion.

"The ISM number was a clear beat and reversed us," said Robert Francello, head trader at Apex Capital in San Francisco. "People wanted to see something at least solid to keep us stable before the ECB tomorrow."

Earlier, the ADP National Employment Report showed about 179,000 private-sector jobs were added in May, below the 210,000 that had been expected. April's job gains were revised downward by 5,000.

The government will release its more comprehensive labor report on Friday.

The Dow Jones industrial average .DJI closed up 15.13 points or 0.09 percent, to 16,737.47, the S&P 500 .SPX gained 3.62 points or 0.19 percent, to 1,927.86 and the Nasdaq Composite .IXIC added 17.562 points or 0.41 percent, to 4,251.642.   Continued...

Traders work on the floor of the New York Stock Exchange March 17, 2014. REUTERS/Brendan McDermid