🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

US STOCKS-Wall St gains after ADP jobs rise, M&A activity

Published 03/30/2011, 10:08 AM
Updated 03/30/2011, 10:12 AM
NDX
-
DJI
-

* ADP jobs gains could help market break from range

* Cephalon soars after bid from Canada's Valeant Pharma

* Trading volume could be light ahead of quarter end

* Indexes up: Dow, S&P 0.5 pct, Nasdaq 0.4 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to open)

By Ryan Vlastelica

NEW YORK, March 30 (Reuters) - U.S. stocks rose on Wednesday as data showed private-sector job creation while acquisition activity lifted sentiment.

Private employers created 201,000 jobs in March, according to ADP Employer Services, a rise that was in line with expectations. For details, see [ID:nEAP102200]

The report by the payrolls processor is closely watched for insight into the health of the labor market, although it has little correlation with the government's broader non-farm payrolls report due on Friday.

"Numbers like the ADP report is what we need for the market to break out of its current range. Hopefully it continues on Friday," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio.

In the latest of a string of large M&A moves, Canadian drugmaker Valeant Pharmaceuticals International on Tuesday made an unsolicited bid to buy Cephalon Inc for $5.7 billion, sending the stock up 28 percent to $75.21 while U.S.-listed shares of Valeant rose 12 percent to $49.55. [ID:nN29299668]

"M&A activity has been very consistent over a broad array of sectors with incredible premiums, and that's one of the biggest catalysts for the market's rebound," Lancz said.

The Dow Jones industrial average <.DJI> was up 54.91 points, or 0.45 percent, at 12,333.92. The Standard & Poor's 500 Index <.SPX> was up 6.21 points, or 0.47 percent, at 1,325.65. The Nasdaq Composite Index <.IXIC> was up 10.73 points, or 0.39 percent, at 2,767.62.

Gains may be limited by uncertainties over Japan's nuclear power situation and civil unrest in oil-producing regions. Trading volume has been weak, with Monday and Tuesday posting the lowest and second lowest days of the year, respectively, suggesting shaky investor confidence before the quarter ends.

The S&P is currently up 4.9 percent in the first quarter, based on Tuesday's close.

Family Dollar Stores Inc reported second-quarter earnings that rose from the prior year and were at the high end of the company's forecast, which it recently raised. The stock rose 0.3 percent to $53.57 after rallying before the open. [ID:nN29260008]. (Editing by Kenneth Barry)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.