Updated from 4:32 p.m. EDT
Stocks in New York opened the second quarter with gains Wednesday as Wall Street brushed off weak employment data and focused on better-than-expected gauges of economic activity elsewhere.
Dow Jones Industrial Average
rose 152.68 points, or 2%, to 7761.60, while the
added 13.21, or 1.7%, to 811.08. The
climbed 23.01 points, or 1.5%, to 1551.60.
Leading the Dow,
gained 7.4%, while
JP Morgan Chase
tacked on 5.9% each.
Perhaps helping the financials, the Financial Accounting Standards Board will vote Thursday on whether to make changes to fair value, or mark-to-market,
were also on the rise, adding 7.3% and 4.2%, respectively, after some automakers reported that sales picked up at the end of March despite being down drastically for the month overall.
A number of economic reports were in, and some of them were better than expected.
One that wasn't contained new information on the job market. Two days ahead of the government's payroll data, ADP reported a loss of 742,000 jobs in the private sector in March, far more than the expectation for 663,000.
"Keep in mind that ADP underestimated the damage pretty severely most of last year, to the point where most people discounted it," says Jack Ablin, chief investment officer at Harris Private Bank. After an adjustment the report has tended to overshoot unemployment, says Ablin, "so given the more recent history, perhaps it's not going to be as bad as it seems."
In some of the day's better-than-expected data, construction spending declined less severely than expected in February. It fell 0.9%, compared with expectations for a 1.9% drop and a 3.5% decline in January.
As for other data, the Institute for Supply Management's manufacturing index was roughly in line with expectations, rising 0.5 to 36.3 in March. Pending home sales data, which fell more than 7% in January, were up 2.1% in February, while economists hadn't predicted a change.
"It's slow going, one bit at a time, but what it says is that certainly
the over-the-top stimulus is starting to come through with higher numbers," says Ablin.
Aside from economic data, news was flowing in from the tech and auto industries.
Research in Motion
launched its one-stop shop for add-on
on Wednesday, similar to
and other smartphone makers. Meanwhile, Skype announced new client versions of its
for BlackBerries and iPhones at the CTIA cellular industry show in Las Vegas.
Research in Motion shares added 5.8%, and Apple tacked on 3.4%.
Automakers continue the struggle to transform, and in the latest development,
, cutting workers' pay and implementing 13 nonproduction days at its North American plants to scale back its output. Shares rose 9.3% to $25.90.
In the U.S., President Obama believes a quick,
is likely the best medium for
to restructure and become a competitive automaker, according to a published report.
Earlier this week, Chrysler and GM got
one last chance
from the U.S. government to qualify for more taxpayer aid, while
for the first time in 14 years.
Ford said its
fell 41% in March, while its retail-market share was the highest since December 2006. Toyota reported that its U.S. sales fell 39% in the month.
GM fared worse, with
45% in March. One potentially good sign for the automakers was that both GM and Ford said sales picked up substantially at the end of the month. GM shares declined 0.5% to $1.93.
On Thursday the leaders of the world's biggest economies will gather at a G-20 summit and discuss global efforts to stem the financial crises.
Taking a look at commodities, oil fell $1.27 to settle at $48.39 a barrel. Gold added $2.70 to $927.70 an ounce.
Commercial inventories of crude rose by 2.8 million barrels to 359.4 million barrels in the week ended March 27, the Energy Information Administration said, relatively in line with estimates.
However, gasoline inventories increased by 2.2 million barrels to 216.8 million barrels, contrasting expectations for a decrease. Distillates, which were also expected to decline, increased more modestly.
Longer-dated Treasuries were recently rising, with the 10-year up 2/32, to yield 2.66%, while the 30-year was gaining 19/32 and yielding 3.50%. The dollar was slightly weaker against the yen and stronger vs. the euro and pound.