2/1/2012 4:22 PM ET
(RTTNews) - With traders reacting positively to the latest batch of economic data, stocks turned in a strong performance during trading on Wednesday. The upward move on the day came after the markets experienced choppy trading in the previous session.
The major averages ended the session off their best levels of the day but still closed firmly in positive territory. The Dow rose 83.55 points or 0.7 percent to 12,716.46, the Nasdaq jumped 34.43 points or 1.2 percent to 2,848.27 and the S&P 500 advanced 11.67 points or 0.9 percent to 1,324.08.
The strong gain on the day extended a recent upward move by the tech-heavy Nasdaq, which reached its best closing level in over six months.
The strength on Wall Street was partly due to the release of a report from payroll processor ADP showing a continued increase in private sector employment in the month of January.
ADP said employment in the non-farm private business sector rose by 170,000 jobs in January following a revised increase of 292,000 jobs in December.
A separate report from the Institute for Supply Management showing a continued expansion in manufacturing activity in the month of January also generated buying interest, with the index of activity in the sector reaching a seven-month high.
The ISM said its purchasing managers index rose to 54.1 in January from a revised 53.1 in December, with a reading above 50 indicating growth in the manufacturing sector.
The release of the ISM report on U.S. manufacturing also came after the release of separate reports showing expansions in manufacturing activity in both Germany and China.
Additionally, the Commerce Department released a report showing a much bigger than expected increase in U.S. construction spending in the month of December.
Positive sentiment was also generated by reports that social networking site Facebook may soon file paperwork for a $5 billion initial public offering. Morgan Stanley (MS), which was reportedly selected as the lead underwriter for the offering, rose by 4 percent on the day.
Shares of Whirlpool (WHR) also moved sharply higher after the appliance maker forecast 2012 earnings above analyst estimates. Whirlpool jumped by 13.5 percent to a five-month closing high.
On the other hand, online retailer Amazon.com (AMZN) came under pressure after reporting weaker than expected fourth quarter sales and providing disappointing guidance.
Sector News
Most of the major sectors moved to the upside on the day, reflecting broad based buying interest. Electronic storage stocks posted particularly strong gains, driving the NYSE Arca Disk Drive Index up by 6.3 percent to its best closing level in over six months.
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