Major Averages Move Higher After ADP Employment Data

Stocks are moved higher in early trading on Wednesday after the ADP employment report showed a 162,000 increase in jobs in September. This was ahead of economists median expectations for an increase of 140,000 jobs. According to Bloomberg, the hiring gains came from companies with fewer than 500 workers, which is a sign that small business competition and growth is perking up. “Small and medium-size firms continue to be the driving force behind job growth,” Ward McCarthy, chief financial economist at Jefferies & Co. Inc. in New York, said in a research note. “Hiring at startup and small firms will continue to be the key to the sustainability of the labor market recovery going forward.” The stock market reacted favorably to the data, with the Dow rising around 40 points. The S&P and Nasdaq had notched gains of 0.38 percent and 0.48 percent, respectively. Strength has been concentrated in the transportation sector, which was up 0.75 percent and services, which had gained 0.53 percent. Notable weakness, however, was seen in basic materials and energy, which were both down for the day, likely because of a rising U.S. Dollar.