US open: Wall Street looks to close out the month on a positive note

Shares on Wall Street recorded some gains on Wednesday with the last day of what has been a terrible month for global stocks was helped along by strong performances from the likes of Facebook and General Motors.

At 1540 GMT, the Dow Jones Industrial Average was up 1.14% to 25,159.19, while the S&P 500 had gained 1.43% to 2,720.90 and the Nasdaq was trading 1.99% firmer at 7,303.94.

Oanda analyst Craig Erlam said: "The final day of the month is shaping up to be a treat for investors following what has been an otherwise shocking month for stock markets."

"Positive momentum has been gathering throughout the Asian and European sessions in what investors will be hoping is a sign that the worst of the sell-off is behind us. October has truly lived up to its reputation this year, with the major indices in the US wiping off all gains for the year and entering correction territory along the way."

Facebook was 4.51% higher in early trade, having initially moved lower after its earnings late on Tuesday.

XTB's chief market analyst David Cheetham said: "The moves are a reflection of what could be described as a mixed earnings release, with earnings per share smashing forecasts but any over-optimism was tempered by a smaller than expected rise in daily active users and a small miss in revenues.

"Taking a step back the results are fairly solid on the whole and while it looks like rapid growth for the tech giant may be becoming a thing of yesteryear, at least the business is consolidating and generating decent profits.

Elsewhere, General Motors surged 8.08% at the bell after it posted a 25% increase in third-quarter operating profit as it sold more expensive trucks and sport-utility vehicles in the US.

Yum Brands racked up gains of 3.92% the open after the KFC, Pizza Hut and Taco Bell owner's third-quarter revenue and profit beat analysts' expectations.

Wireless carrier Sprint was 9.82% as its quarterly earnings and revenue topped expectations, while Kellogg's slumped 7.86% following the release of its third-quarter numbers.

Data out earlier from the ADP showed that private sector employment in the US rose more than expected in October.

Employers added 227,000 jobs versus expectations for a smaller increase of 189,000. Meanwhile, September's total was revised down to 218,000 from 230,000.

Small businesses with fewer than 50 employees added 29,000 jobs, while medium businesses with between 50 and 499 employees created an extra 96,000 jobs. Large companies with 500 or more employees recruited an extra 102,000 people.

Mark Zandi, chief economist at Moody's Analytics, said: "The job market bounced back strongly last month despite being hit by back-to-back hurricanes. Testimonial to the robust employment picture is the broad-based gains in jobs across industries. The only blemish is the struggles small businesses are having filling open job positions."

Elsewhere, economic activity in the Chicago area deteriorated a little more than expected in October, according to figures released on Wednesday.

The MNI Chicago business barometer fell to 58.4 from 60.4 in September, missing expectations for a smaller drop to 60.0 and marking the lowest reading since April. Still, it was well above the 50 mark that separates contraction from expansion.

MNI said the drop was due to a fall in order book growth and unfinished orders, which offset a rise in output, delivery times and employment.

On the year, the barometer was down 10.7%, the biggest year-over-year fall since December 2015.

Jamie Satchi, economist at MNI Indicators, said: "The MNI Chicago Business Barometer continued to revert back towards trend-levels in October, cooling off after a hot and unsustainable run last year. Production continues to be restrained by issues between firms and their suppliers, reflected by supplier deliveries at a 14-year high, while the latest raft of tariffs on Chinese goods appears to be exacerbating uncertainty across firms."