Stocks rose on Wall Street Wednesday as more U.S. companies turn in their latest quarterly reports and several economic updates shed some light on the U.S. economy.
Several big industrial companies also helped lift the market. Companies from a broad spectrum of industries reported their latest financial results and gave updated forecasts.
There are still several informative private economic updates that Wall Street can review.
A monthly report from ADP showed that private payrolls rose more than expected in October. The report offers a partial glimpse into the job market, which has been generally weakening and raising broader concerns about economic growth.
The services sector, which is the largest part of the U.S. economy, expanded in October more than Wall Street expected, according to the Institute for Supply Management. The report shows that while overall business activity grew, employment was still contracting.
The mix of a weaker job market and hot inflation leaves the Fed in a tough position.
“For Fed watchers, this ADP report should make it clear that a December rate cut is now in play,” said Jamie Cox, managing partner for Harris Financial Group, in a note to investors. “We are nearing stall speed in the labor market, and that will get the Fed’s attention.”
Wall Street has tempered its expectations for another interest rate cut in December. Investors are now forecasting a 65% chance that the Fed will cut interest rates, according to CME FedWatch. That’s down from a 90% chance just prior to the previous rate cut.
Treasury yields rose in the bond market. The yield on the 10-year Treasury rose to 4.15% from 4.09% late Tuesday. The yield on the two-year Treasury rose to 3.62% from 3.58% late Tuesday.
European markets gained ground and Asian markets closed mostly lower.
