Stocks Rebound on Private Sector Payrolls

U.S. stocks bounced at the open on Wednesday after data had U.S. companies adding more jobs than expected in October and ahead of a statement on the economy from the Federal Reserve. The Dow Jones Industrial Average lately added 124.80 points to 11,782.76.The S&P 500 Index rose 14.32 points to 1,232.60. The Nasdaq Composite added 17.81 points to 2,624.77.

Private-sector payrolls moderately increased in October, led by the services-producing sector and small businesses, according to the ADP employment report released Wednesday. Payrolls rose 110,000, as services employment gained 114,000 and goods- producing employment fell 4,000.

The downturn in euro zone manufacturing in October was even deeper than previously thought, according to “grim” business surveys on Wednesday that showed the currency union’s debt crisis is dragging its economy back into recession. The final Markit Eurozone Manufacturing Purchasing Managers Index (PMI) for October, which gauges changes in activity levels across thousands of euro zone manufacturers, fell to 47. 1, revised down from a preliminary reading of 47.3 and down from 48.5 in September.

Greek Prime Minister George Papandreou was flying to the chic French Riviera resort of Cannes on Wednesday to explain himself to European leaders furious over his surprise referendum on a bailout deal that took them months to work out.

MasterCard Inc. said Wednesday its third-quarter profit soared 38 percent on a big spike in card use around the world. MasterCard reported net income of $717 million, or $5.63 per share for the three months ended Sept. 30. That compared with $518 million, or $3.94 per share, for the year-earlier period. Revenue jumped 27 percent to $1.82 billion, from $1.43 billion last year.