Moderate gains at Wall Street

Dow closes at an all-time high for the 33rd time in 2014

US stocks ended the midweek session on an upbeat note on Wednesday, 03 December 2014 with the advance for the second day in a row. Investors shrugged off a batch of mixed economic reports, including private-sector payrolls and ISM services index. Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels on Wednesday.

The Dow Jones Industrial Average also set an intraday record and closed at an all-time high for the 33rd time in 2014. The blue-chip index added 33.07 points, or 0.2%, to 17,912.62. The Nasdaq Composite ended the day 18.66 points, or 0.4%, higher at 4,774.47. The S&P 500 gained 7.77 points, or 0.4%, to 2,074.32.

Six growth-sensitive groups ended in the green while health care was the lone gainer on the countercyclical side. The materials sector settled in the lead after showing relative strength throughout the session.

ADP national employment report came out and did not quite meet market expectations. The figure showed a rise of 208,000 jobs in November, while the market place was expecting something in the range of up 230,000.

The U.S. dollar index hit a four-year high Wednesday and the Euro currency fell to a two-year low against the greenback. This was an underlying negative for the precious metals markets today that did limit the upside. The latest European Union purchasing managers index (PMI) came in weaker than expected Wednesday, which pressured the Euro. The data firm Markit reported the said the composite EU PMI for November was 51.1 versus 52.1 in October. A reading above 50.0 suggests the sector is growing.

The European Central Bank holds its monthly meeting on Thursday. Many believe the ECB will not yet move to further stimulate EU monetary policy, but most think its coming. Recent economic data coming out of the European Union suggests the ECB will make its move in the first quarter of 2015.

Other Economic data included Q3 Labor Productivity Data, ISM Services, and the MBA Mortgage Index. Q3 nonfarm business productivity was revised up to 2.3% from an originally reported 2.0% gain while the consensus expected a revision to 2.4% Unit labor costs were revised down and now show a 1.0% decline in the third quarter after initially showing a small 0.3% increase. The consensus expected a flat reading. This was the second consecutive quarterly decline. The ISM Services Index for November rose to 59.3 from 57.1 while the consensus expected an uptick to 57.5. The weekly MBA Mortgage Index fell 7.3% to follow last week's 4.3% decline.

Bullion prices ended higher on Wednesday, 03 December 2014 at Comex to close above $1,200 as tepid U.S. data and higher oil prices revived buying interest. Gold prices ended the U.S. day session moderately higher Wednesday, on a short-covering rebound in the futures market and on some perceived bargain-basement buying in the cash market.

Gold for February delivery rose $9.30, or 0.8%, to settle at $1,208.70 an ounce. March silver was off 4 cents at $16.41 an ounce.

Crude-oil futures rose on Wednesday, 03 December 2014 at Nymex picking up more steam after a U.S. government-supply report showed an unexpected decline in crude inventories. On the New York Mercantile Exchange, light, sweet crude futures for January delivery rose 50 cents, or 0.8%, to settle at $67.38 a barrel.

The Energy Information Administration reported earlier Wednesday that U.S. crude-oil supplies declined 3.7 million barrels on the week ended 28 November 2014. Market had expected crude inventories to increase by 380,000 barrels on the week. The EIA also reported gasoline inventories rose by 2.1 million barrels, while supplies of distillates rose by three million barrels. Gasoline futures ended at a five-year low on Wednesday. Market had expected distillates supplies to decline by 1.2 million barrels and gasoline stockpiles to end the week unchanged.

Treasuries spent the bulk of the session near their flat lines before ending close to highs. The 10-yr yield slipped one basis point to 2.28%.

Participation was a bit below average with just over 755 million shares changing hands at the NYSE floor.

Tomorrow's data will be limited to the Challenger Job Cuts report for November, which will be released at 7:30 ET while weekly Initial Claims will cross at 8:30 ET (consensus 295K).

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