Dow Set to Join S&P 500 in Record Territory
All of Wall Street’s major indexes opened higher, reflecting a strong pre-market for Dow futures. The Dow Jones Industrial Average climbed 58 points, or 0.2%, to 26,651.06.
The broad S&P 500 Index of large-cap stocks rose 0.2% to 2,951.67, marking a new record high. Most of the major sectors reported gains at the start of trading Tuesday, with utilities surging 1.7%. Consumer staples, real estate and materials also rose sharply.
Meanwhile, the technology-focused Nasdaq Composite Index climbed 0.5% to 8,134.26. The Nasdaq declined sharply on Tuesday as shares of Alphabet Inc. (GOOG) plummeted.
U.S. Job Engine Hums Along
U.S. businesses added a whopping 275,000 workers to payrolls last month, the most since last July, according to payrolls processor ADP. The figure blew past forecasts calling for 180,000, adding to growing evidence that President Trump’s economic recovery was still on track.
April hiring was led by mid-sized companies operating in the services sector. The goods producing sector also saw big gains led by construction.
“The job market is holding firm, as businesses work hard to fill open positions. The economic soft patch at the start of the year has not materially impacted hiring,” Mark Zandi of Moody’s Analytics said in the official press release. “April’s job gains overstate the economy’s strength, but they make the case that expansion continues on.”
ADP payroll data are considered a good proxy for the official nonfarm payrolls report that is due two days later. On Friday, the U.S. Department of Labor is expected to show the creation of 180,000 nonfarm jobs in April. The economy added 196,000 workers in March.
The U.S. economy got off to a strong start in the first quarter, growing at an annualized pace of 3.2%, the Commerce Department reported Friday. That marked the best start to a year since 2015.
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