NEW YORK (AP) - A batch of good news on the economy Wednesday pushed the stock market to new highs.
Payroll processer ADP said that U.S. companies added 208,000 jobs in November, the third straight month that hiring has topped 200,000. A separate report showed that service sector activity climbed close to an eight-month high in November.
The reports were an encouraging sign before the government's monthly jobs survey is published on Friday.
"There is nothing more important than employment data," said Russell Price, senior economist at Ameriprise Financial. "More income fuels more consumer spending over time."
The Standard & Poor's 500 index rose 7.78 points, or 0.4 percent, to 2,074.33. The Dow Jones industrial average rose 33.07 points, or 0.2 percent, to 17,912.62. The Nasdaq composite climbed 18.66 points, or 0.4 percent, to 4,774.47.
After rebounding from a slump in mid-October, stocks have been gradually moving higher on optimism that the U.S. economy will continue to improve next year. Investors are also hopeful that actions by central banks outside of the U.S. will help bolster global growth.
Economists forecast that the U.S. government will say employers added 225,000 jobs in November and that the unemployment rate slipped to 5.7 percent from 5.8 percent, according the financial data provider FactSet.
"The biggest, most important economic statistic in the world looks like it will continue its winning streak if this morning's ADP employment report is to be believed," Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi, wrote in a note to clients. "Things are better than you think."
On Wednesday, stocks also got a lift from the energy sector as the price of oil showed signs of stabilizing. The sector rose for a third straight day, as drilling companies and other businesses that provide services to the oil and gas industry gained.