Stocks have shown a strong upward move over the course of the trading day on Wednesday after turning in a lackluster performance in the previous session. The markets have benefited from a positive reaction to the latest batch of economic data.
The major averages have moved roughly sideways in recent trading, hovering near their best levels of the day. The Dow is up 136.19 points or 1.1 percent at 12,769.10, the Nasdaq is up 33.18 points or 1.2 percent at 2,847.02 and the S&P 500 is up 14.41 points or 1.1 percent at 1,326.82.
The broad based buying interest on Wall Street is 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.
Economists had expected employment to increase by about 172,000 jobs compared to the addition of 325,000 jobs originally reported for the previous month.
A separate report from the Institute for Supply Management showed a continued expansion in manufacturing activity in the month of January, 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.
In corporate news, shares of Whirlpool (WHR) have moved sharply higher on the day after the appliance maker forecast 2012 earnings above analyst estimates. Whirlpool is currently up by 18.1 percent after reaching a five-month intraday high.
Broadcom (BRCM) is also trading higher on the day after reporting better than expected fourth quarter results and announcing an increase in its quarterly dividend.
On the other hand, online retailer Amazon.com (AMZN) has come under pressure after reporting weaker than expected fourth quarter sales and providing disappointing guidance.
Sector News
While most of the major sectors have moved higher amid broad based buying interest, electronic storage stocks are posting particularly strong gains. Reflecting the strength in the sector, the NYSE Arca Disk Drive Index is up by 6.2 percent after reaching a six-month intraday high.
Seagate Technology (STX) is leading the storage sector higher, with the hard drive maker surging up by 22 percent on the day. The gain by Seagate comes after the company reported stronger than expected second quarter earnings growth amid significant improvements in revenues and margins.
Considerable strength is also visible among steel stocks, which have benefited from the upbeat manufacturing data. Strong gains by Gerdau (GGB) and Carpenter Technology (CRS) are contributing to a 2.8 percent advanced by the NYSE Arca Steel Index.
Semiconductor and biotechnology stocks are also posting notable gains, with the Philadelphia Semiconductor Index and the NYSE Arca Biotechnology Index up by 2.5 percent and 2.6 percent, respectively.
Reflecting the broad based buying interest, healthcare, defense, financial, and railroad stocks are also seeing significant strength in mid-day trading.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. While Japan's Nikkei 225 Index edged up by 0.1 percent, Hong Kong's Hang Seng Index dipped by 0.3 percent.
Meanwhile, the major European markets all showed notable moves to the upside on the day. The U.K.'s FTSE 100 Index jumped by 1.9 percent, while the French CAC 40 Index and the German DAX Index surged up by 2.1 percent and 2.4 percent, respectively.
In the bond market, treasuries are giving back some ground after showing a strong upward move in recent sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.8 basis points at 1.837 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.