NEW YORK (TheStreet) -- Stocks accelerated gains by mid-morning Wednesday after the U.S. trade deficit retreated from multi-year highs and crude inventories saw another weekly decline.
The S&P 500 was up 0.55%, the Dow Jones Industrial Average climbed 0.8%, and the Nasdaq added 0.66%.
Crude inventories fell 1.9 million barrels in the week ended May 30. Analysts had expected a decline of 1.7 million barrels after a drop of 2.8 million barrels a week earlier. Inventories have been on the decline as U.S. oil producers shutter unprofitable rigs in the face of lower oil prices.
Non-manufacturing activity expanded at a slower-than-expected rate in May, according to the ISM Non-Manufacturing Index. The measure of the services industry fell back to 55.7, below forecasts for 57.2 after a 57.8 reading in April. Any reading above 50 indicates expansion.
The U.S. trade deficit retreated 19.2% in April to $40.9 billion after hitting a seven-year high of $50.6 billion in March that was tied to West Coast port closures. Economists expected a slightly wider deficit of $43.5 billion. The lower trade deficit will likely boost second-quarter GDP as the economy continues to comb out the kinks from port backlogs.
"The drop back in the trade deficit ... confirms that the spike in March was a temporary surge caused by the ending of the West Coast port dispute in February and possibly the timing of the Chinese New Year holiday," said Capital Economics chief U.S. economist Paul Ashworth.
The U.S. private sector added 201,000 jobs in May, the most jobs added in four months, according to the ADP jobs report. Analysts had expected an increase of 200,000 after 169,000 additions in April.