Stocks Rise after ADP Data

U.S. stocks opened higher on Wednesday as investors awaited a Federal Reserve statement, helped by a weaker-than-expected ADP jobs report that bolstered bets on the Fed maintaining its accommodative polices. The Dow Jones Industrial Average lately rose 12.88 points, or 0.08%, to 15,693.23. The S&P 500 tacked on 0.93 point, or 0.05%, to 1,772.88. The Nasdaq Composite was up 11.06 points, or 0.28%, to 3,963.40.

U.S. consumer prices rose modestly in September but there was little sign of underlying
inflation in the economy, which should give the Federal Reserve scope to maintain its monthly bond purchases. The Labor Department said on Wednesday its Consumer Price Index increased 0.2 percent last month as energy prices rebounded, after edging up 0.1 percent in August.

U.S. private-sector employers hired the fewest number of workers in six months in October while tepid domestic demand kept inflation benign last month, suggesting the economy was still in need of stimulus from the Federal Reserve. Employers in the vast private sector added 130,000 new jobs to their payrolls this month, the ADP National Employment Report showed on Wednesday.

General Motors Co (GM) on Wednesday posted a better-than-expected quarterly profit on strong results in its core North American market and the first revenue increase in Europe in two years.GM’s net income attributable to common shareholders fell to $757 million, or 45 cents a share in the third quarter, compared with $1.48 billion, or 89 cents a share, in the year- earlier quarter. But operating earnings rose almost 15 percent to $2.64 billion.

Fannie Mae, the largest U.S. home funding source, said it plans to sell $500 million of
benchmark bills on Wednesday. The sale will include $250 million of three-month bills, due Jan. 29, 2014, and $250 million of six-month bills, due April 30, 2014.

Major U.S. food and chemical companies are pouring millions of dollars into efforts to block approval of a ballot initiative in Washington state that would make it the first in the United States to require labeling of foods containing genetically modified crops.

Accounting giant PricewaterhouseCoopers said Wednesday it has reached a deal to buy business consultancy Booz & Company.