Stocks Rebounding On Upbeat Jobs Data, Increase In Oil Prices - U.S. Commentary

(RTTNews) - Stocks have moved mostly higher in early trading on Wednesday, regaining some ground after falling sharply over the past few sessions. The major averages have climbed firmly into positive territory but remain well off their recent highs.

In recent trading, the major averages have pulled back off their highs for the session, but they remain firmly positive. The Dow is up 135.06 points or 0.8 percent at 17,506.70, the Nasdaq is up 36.08 points or 0.8 percent at 4,628.81 and the S&P 500 is up 16.49 points or 0.8 percent at 2,019.10.

The early strength on Wall Street is partly due to the release of a report from payroll processor ADP showing stronger than expected private sector job in the month of December.

ADP said the private sector added 241,000 jobs in December following an upwardly revised increase of 227,000 jobs in November. Economists had expected an increase of about 235,000 jobs.

Jay Morelock, an economist at FTN Financial, said, "The ADP print was a relief, with some fearing it would fall below 200,000 due to oil price disruptions. Fears of a dismal jobs report this Friday have been assuaged, for now."

Friday morning, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.

Buying interest has also been generated by a rebound by the price of crude oil, with crude for February delivery climbing $1.21 to $49.14 a barrel after tumbling to a new five-year low on Tuesday.

Oil stocks have subsequently shown a strong move to the upside, driving the NYSE Arca Oil & Gas Index up by 1.7 percent.

Considerable strength has also emerged among biotechnology stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Biotechnology Index.

Retail, healthcare, and housing stocks are also seeing early strength, with J.C. Penney (JCP) leading the retail sector higher after reporting strong holiday sales.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Hong Kong's Hang Seng Index advanced by 0.8 percent, while Australia's All Ordinaries Index dipped by 0.2 percent.

Meanwhile, the major European markets have all moved notably higher on the day. While the German DAX Index is up by 1 percent, the French CAC 40 Index is up by 1.1 percent and the U.K.'s FTSE 100 Index is up by 1.2 percent.

In the bond market, treasuries are giving back some ground after rising sharply over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.2 basis points at 1.995 percent.