NEW YORK: US stocks rose on Wednesday, pushing the S&P 500 to a
record close, following mixed economic data a day ahead of the
closely-watched meeting of the European Central Bank.
The broad-based S&P 500 rose 3.64 points (0.19 per cent) to 1,927.88, nearly three points above Monday's record close.
The
Dow Jones Industrial Average rose 15.19 points (0.09 per cent) to
16,737.53, while the tech-rich Nasdaq Composite Index advanced 17.56
points (0.41 per cent) to 4,251.64, helped by a 1.1 percent gain in
Apple, its biggest component.
Stocks treaded in negative territory
after early US economic data showed a drop in private-sector job
creation in May and a jump in the trade deficit in April to a two-year
high.
But they turned higher after the Institute for Supply Management said services sector activity surged in May.
The
US Federal Reserve's "Beige Book" report was generally positive, saying
all 12 districts of the country saw increasing economic activity in
recent weeks.
Investors were girding for the ECB to unveil major
stimulus actions on Thursday. Analysts said there is a possibility the
market will be disappointed if the measures are less aggressive than
expected.
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"All twelve Federal Reserve Districts report that economic activity expanded," said the Fed's latest "Beige Book" report, based on a survey of economic conditions in recent weeks.
That marked an improvement from the previous Beige Book, released on April 16, when two districts -- Cleveland and St. Louis -- reported a decline in economic activity as the economy was emerging from a first-quarter contraction of 1.0 percent.
The May Beige Book said growth was described as "moderate" in seven Fed districts and "modest" in five. Activity in the area around Kansas City slowed slightly.
"Overall, this report is consistent with our expectation of a pick-up in growth in the second quarter after a weather-related contraction in Q1," said Cooper Howes of Barclays in a research note.
The May report, covering a survey period through May 23, will be used at a monetary policy meeting of the Federal Open Market Committee on June 17-18.
The FOMC is expected to continue to pare another $10 billion from its asset-purchase program aimed at supporting growth, taking it to $35 billion a month.
Consumer spending, the engine of two-thirds of US economic activity, grew at a "moderate" pace across almost all districts, the report said.