NEW YORK — A surprising jump in hiring sent bond prices lower and lifted the dollar. Stocks edged higher.
A survey from payroll processor ADP found that private companies added 297,000 jobs last month, far above the 100,000 economists expected. The report is the first chance for investo
rs to see how strong the job market was in December.
The next look comes Friday morning when the Labor Department releases its monthly report on total U.S. payrolls and the unemployment rate. Economists expect the rate will dip to 9.7 percent from 9.8 percent.
The unexpectedly high jobs survey from ADP suggests that the Labor Department report will also be strong. But economists cautioned against reading too much into the ADP figures, which also take into account weekly figures on claims for unemployment insurance, said Thomas Simons, market economist at Jefferies & Co.
“When the ADP number comes in strong, it doesn’t mean all the other labor reports will come in strong,” Simons said. “But it does show that the labor market is improving. You have to take all these numbers together and come up with a mosaic view.”
Treasurys prices slid, pushing their yields higher. The price of the 10-year note fell 97 cents per $100 invested. Its yield rose to 3.45 percent from 3.33 percent late Tuesday. The yield helps set interest rates on many kinds of loans including mortgages.
Traders tend to sell bonds when they see signs that the economy is strengthening. Faster economic growth and higher inflation diminish the appeal of low-risk investments such as Treasurys.
The higher rates on the Treasury market helped push the dollar up against other currencies. The dollar rose 1.5 percent against the Japanese yen.
The Dow Jones industrial average rose 45 points, or 0.4 percent, to 11,736 in afternoon trading.
The Standard & Poor’s 500 index rose 6, or 0.5 percent, to 1,276. The Nasdaq rose 16, or 0.6 percent, to 2,697.
A survey from the Institute for Supply Management showed that service companies reported more new orders and higher prices last month. The ISM’s monthly index measuring the economic strength of U.S. service providers rose to its highest level since May 2006.
Service providers such as retailers, hotels, banks and construction companies employ about 80 percent of the country’s work force. But their growth has lagged behind manufacturers since the recession ended June 2009.
Qualcomm Inc. rose 2 percent to $52 after the technology company said it had agreed to buy chip maker Atheros Communications Inc. for $3.2 billion in cash. The deal is aimed at giving Qualcomm, which makes chips for cell phones, a foothold in the growing market for tablet computers.
BJ’s Wholesale Club Inc. fell 1.8 percent to $46.15 after the retailer said it would cut jobs and close five stores.
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