Stocks open up on ADP jobs report

Stocks open up on ADP jobs report
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Stock markets rose on Wednesday after ADP reported an increase in jobs for June.

The Dow Jones Industrial Average rose nearly 200 points, or 0.8 percent, and the S&P 500 was up 17 points, or 0.6 percent.

ADP Research Institute and Moody’s Analytics reported that private non-farm businesses added 2.4 million new jobs in June. Of those, almost 1.9 million were in the service sector, which had seen steep losses due to the coronavirus pandemic.

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The readout sets the stage for a positive Labor Department jobs report for June, which is due Thursday, ahead of the Independence Day holiday.

After steep losses in the first quarter, markets bounced back for one of their best quarters in decades in the second quarter on hopes of a speedy recovery. Although they've recovered more than half their losses, markets remain below their February peaks.

But the economy may face renewed trouble as the nation's attempts to contain the COVID-19 pandemic falter. Large states such as California, Texas and Florida are seeing significant spikes and have had to backtrack on their reopening plans.

A return to shutdowns could put more businesses on the brink of bankruptcy over the edge.