Stocks Opened Higher after ADP Report

U.S. stocks opened higher on Wednesday after data showed solid job gains in the private sector and a sharp upward revision to productivity growth in the second quarter. The Dow Jones Industrial Average lately jumped 193.28 points, or 1.20%, to 16,251.63. The S&P 500 gained 17.19 points, or 0.90%, to 1,931.04. The Nasdaq Composite added 44.04 points, or 0.95%, to 4,680.14.

U.S. private employers added fewer-than-expected workers in August, but the labor market momentum likely remains strong enough for the Federal Reserve to consider an interest rate hike this year. The ADP National Employment Report on Wednesday showed private payrolls increased 190,000 last month. While that was below economists’ expectations for a gain of 201,000 job.

The productivity of U.S. workers and businesses in the spring was stronger than initially reported. U.S. productivity rose at a 3.3% annual pace in the second quarter, up from a preliminary 1.3% estimate, the government said Wednesday.

Home mortgage applications increased dramatically last week, as a strong sell-off in the U.S. stock market pushed interest rates lower briefly. An index of application volume jumped 11.3 percent on a seasonally adjusted basis for the week ending August 28th versus the previous week, according to the Mortgage Bankers Association (MBA).

Oil prices fell on Wednesday as concerns about the global economy exacerbated worries that an oversupply of crude could last longer than expected. Brent crude for October was down 70 cents at $48.86 a barrel by 1130 GMT. U.S. crude for October fell $1.00 to $44.41 a barrel.

U.S. transportation officials will offer $10 million in grants for states to upgrade highway-rail crossings and tracks in response to a recent surge in flammable fuel shipments.