- POSTED: 03 Jul 2014 04:58
The Dow and S&P 500 edged to new records on Wednesday ahead the official US jobs data for June, with the outlook buoyed by a strong ADP private sector report
NEW YORK: The Dow and S&P 500 edged to new records on Wednesday ahead the official US jobs data for June, with the outlook buoyed by a strong ADP private sector report.
The Dow Jones Industrial Average gained 20.17 points (0.12 per cent) to 16,976.24, while the broad-based S&P 500 added 1.30 points (0.07 per cent) at 1,974.62. Both notched records for the second day in a row.
The tech-rich Nasdaq Composite Index slipped 0.92 points (0.02 per cent) to 4,457.73.
Payrolls company ADP said the private sector added 281,000 jobs in June, surging higher from 179,000 in May. That came ahead of Thursday's Department of Labor report on job creation and unemployment nationwide in June.
Dan Greenhaus, chief global strategist for BTIG, said Thursday's trade could be volatile due to the jobs report and the abbreviated period for placing trades. Markets close at 1700 GMT on Thursday, three hours ahead of usual due to the US Independence Day holiday on Friday, when markets are also closed.
Dow member JPMorgan Chase dipped 1.0 per cent on news that chief executive Jamie Dimon will be treated for throat cancer. Dimon said the prognosis is good for a full recovery. Even so, the bank has a succession plan in place, a spokesman said.
Tyson Foods shot up 2.9 per cent after it announced it sealed an $8.6 billion takeover of Hillshire Brands, concluding a bidding war with Brazilian-owned rival Pilgrim's Pride.
Airlines retreated after Delta Air Lines said June results were weighed down by lower business travel to Latin America due to the World Cup. Delta dropped 5.1 per cent, while American Airlines fell 4.4 per cent and United Continental lost 7.1 per cent.
Beer and wine distributor Constellation Brands advanced 2.3 per cent as first-quarter net income nearly quadrupled to $206.7 million following its acquisition of Grupo Modelo's US beer business.
Agrotech company Monsanto advanced 1.8 per cent as it announced $6 billion in accelerated share repurchases.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.63 per cent from 2.56 per cent on Tuesday, while the 30-year advanced to 3.47 per cent from 3.39 per cent. Bond prices and yields move inversely.