* Private firms add more jobs than expected
* Manufacturing data expected at 10:00 a.m. ET
* Deere up after deal to buy Germany's Wirtgen
* Indexes up: Dow 0.1 pct, S&P 0.25 pct, Nasdaq 0.43 pct
(Updates to open)
By Sweta Singh
June 1 U.S. stocks were higher on Thursday after
better-than-expected private sector hiring showed that the labor
market continues to strengthen, further boosting chances of a
rate hike by the Federal Reserve later this month.
The ADP private sector employment report showed that 253,000
jobs were added in May, well above the 185,000 jobs estimated by
economists polled by Reuters.
The report by payrolls processor ADP acts as a precursor to
the much-awaited nonfarm payrolls data, due on Friday, that
includes hiring in both the public and private sectors.
"I think the Fed has already made up its mind. Unless we
have a real weak employment data tomorrow I think it's a
go-ahead for the Fed to raise rates in June," said Peter
Cardillo, chief market economist at First Standard Financial in
San Francisco Federal Reserve Bank President John Williams
said on Wednesday he sees a total of three interest rate
increases for this year as his baseline scenario, but views four
hikes as also being appropriate if the U.S. economy gets an
Forecasts from Fed officials suggest that a median of two
more hikes are planned before the end of the year.
Traders priced in an 89 percent chance of a rate hike in the
upcoming Fed meeting on June 14, according to Thomson Reuters
At 9:52 a.m. ET (1352 GMT) the Dow Jones Industrial Average
was up 21.5 points, or 0.1 percent, at 21,030.15, the S&P
500 was up 6.16 points, or 0.25 percent, at 2,417.96 and
the Nasdaq Composite was up 26.51 points, or 0.43
percent, at 6,225.03.
Seven of the 11 major S&P 500 sectors were higher, with the
health and technology sectors leading the
The Institute for Supply Management is likely to report that
its national manufacturing index slipped to 54.5 in May from
54.8 in April. The data is expected at 10:00 ET.
"We have a multitude of macro news coming out today and that
will set the tone for the market's direction ... I think we are
looking at another trying session," Cardillo said.
Deere's shares were up 1.9 percent at $124.74 after
the farm and construction major said it would buy privately held
German road construction company Wirtgen Group for $5.2 billion,
Goodyear Tire's shares were up 5.7 percent at $34.03
after Morgan Stanley raised its rating to "overweight" from
Box Inc was up 3.9 percent at $19.40 after the cloud
storage firm's quarterly earnings edged ahead of Wall Street
Advancing issues outnumbered decliners on the NYSE by 1,931
to 657. On the Nasdaq, 1,707 issues rose and 624 fell.
The S&P 500 index showed 28 new 52-week highs and 11 new
lows, while the Nasdaq recorded 82 new highs and 70 new lows.
(Reporting by Sweta Singh in Bengaluru; Editing by Saumyadeb
Chakrabarty and Anil D'Silva)