US equities rise on better-than-expected economic figures

ADP Employer Services said companies hired 42,000 workers in July, beating the median economist estimate in a Bloomberg survey.

US equities rose on Wednesday after strong earnings report from Time Warner and a slight improvement in private employment boosted optimism ahead of Friday's payrolls report.

The Dow Jones industrial average climbed 44 points, or 0.41%, to 10,680. The Standard & Poor's 500 Index rose seven points, or 0.61%, to 1,127. The Nasdaq Composite Index advanced 20 points, or 0.88%, to 2,303.

The Institute of Supply Management’s non-manufacturing index rose from 53.8 to 54.3 last month, surprising economists who forecasted a decline to 53.

In a separate report, ADP Employer Services said companies hired 42,000 workers in July, beating the median economist estimate in a Bloomberg survey and boosting optimism ahead of the government’s more comprehensive non-farm payroll figures, which will be released on Friday. A group of forecasters expected the headline figure, which includes government jobs to be below expectations, at a loss of 70,000 jobs, versus 65,000 in the broader forecast, according to a Reuters poll.

Time Warner gained 0.3% to $32.47 after it reported the highest growth in revenue in two years.

Priceline.com Inc. climbed 22% to $281.30 after its quarterly results and outlook beat market expectations. Coach Inc., the leather goods maker, surged 5.9% to $39.30 following stronger-than-expected fourth-quarter results. Barnes & Noble gained 19.2% to $15.31 as the No. 1 US bookstore chain put itself up on the block. The S&P Retail index climbed 2.2%.

In Europe, equities ended unchanged after stronger economic data in the US offset weaker retail shares that declined on concerns of a fall in consumer demand.

The FTSEurofirst 300 closed flat at 1,071 points. The UK’s FTSE 100 index closed down 0.2%, while Germany’s Dax index was up 0.4%.

In Asia, the Nikkei fell 2.1% leading decliners in the region. The yen’s push stoked further concerns for Japanese companies. Australia’s S&P/ASX 200 declined 0.7%.

Hong Kong’s Hang Seng rose 0.7%, though Chinese index was up barely 0.1%. Shanghai said growth would slow in the current quarter moderating inflation pressures – a big concern for Asian real estate and manufacturing sectors.

Mumbai’s Sensex gained 0.6%, as New Delhi appears more likely to tackle inflation.