US open: Stocks climb after strong ISM data

US equities climbed early on Wednesday, as investors analysed a number of key economic reports ahead of Friday's all-important non-farm payrolls.

Just after 1500 BST, the Dow Jones Industrial Average was up 91 points to 17,642.42, while the S&P 500 and the Nasdaq were 14 and 51 points higher respectively.

Wednesday data

The US private sector added 185,000 jobs in July compared with a downwardly revised 229,000 in June, payment processor ADP said.

The figures fell short of the 210,000 gain analysts had expected.

"The slower pace of private payroll growth reported for July by ADP is broadly in line with our outlook for 200,000 in non-farm and private payroll growth in Friday’s official employment," analysts at Barclays said in a note.

There was more positive news coming from the Institute for Supply Management, which said its index services surged to a 10-year high in July.

Figures released on Wednesday, showed the index rose to 60.3% from a 56% reading in the previous month, comfortably ahead of analysts’ expectations for a 56.5% reading.

Meanwhile, the US trade deficit rose beyond expectations in June, on the back of an increase in the imports in automobiles and drugs from the European Union.

The deficit rose 7.8% in June to $43.8bn from a revised $40.9bn in May and compared with analysts’ expectations of a $42.8bn forecast, the Commerce Department said.

Elsewhere, Asian equities markets painted a mixed picture on Wednesday, following overnight losses.

Japan's Nikkei 225 gained 0.46% despite the release of data which showed overall expansion is slowing, while the Shanghai Composite Index lost 1.64%.

European stocks rose on Wednesday as investors cheered a raft of solid corporate results.

The dollar fell 0.20% against the euro and 0.47% against the pound but rose 0.14% against the yen, while gold futures shed 0.17% to $1,088.80.

Oil prices edged higher, with West Texas Intermediate gaining 0.80% to $46.11 a barrel, while Brent rose 1.15% to $50.57 a barrel.

Walt Disney and Lumber disappoint

In corporate news, Walt Disney tumbled 8.25% after announcing late on Tuesday that its quarterly revenue missed forecast.

Hardwood flooring retailer Lumber Liquidators Holdings plunged 12.2% after swinging to a second quarter loss on the back of a sharp decline in sales and was on track to open at its lowest since November 2011.

Media and entertainment giant Time Warner shed 3.56% despite posting better-than-expected profit and sales earlier on Wednesday and reaffirming its full-year earnings outlook.

Apple rose 0.89% even though it was downgraded to ‘neutral’ from ‘buy’ by analysts at Bank of America Merril Lynch, who also cut their price target to $130 from $142.