(Corrects 3rd paragraph to say Philadelphia semiconductor index
rose to 12-year high, not 14-year high)
* ISM services report strong, but ADP jobs report weak
* Many investors worry about low volume and volatility
* Dow up 0.1 pct; S&P 500 up 0.2 pct; Nasdaq up 0.4 pct
By Angela Moon
NEW YORK, June 4 U.S. stocks rose on Wednesday,
with the S&P 500 hitting another intraday record high as
investors brushed off weaker-than-expected labor market data and
focused on an acceleration in services-sector growth.
But with the Dow and the S&P 500 near record levels, volume
continued to be light ahead of the European Central Bank meeting
on Thursday and the U.S. government's May nonfarm payrolls
report on Friday.
Semiconductors ranked among the day's biggest gainers. The
Philadelphia semiconductor index, known as the SOX, rose
0.3 percent, down from a 12-year high touched earlier on
Wednesday. Many market participants, however, are becoming
concerned about the sector, with the index is up for the 10th
straight session and up 14 percent for the year so far.
Key semiconductor markets like industrials and autos are
likely to face slow demand in the second half of the year,
according to a Goldman Sachs research note. The note also
pointed out that inventories are building and the sector's
valuation is no longer attractive.
The CBOE Volatility Index jumped 0.9 percent, its
third straight daily advance. The VIX, known as the "fear
index," remained just below 12 and well below the historical
average of 20 - a trend that some interpret as a sign that
investors have become complacent.
The Dow Jones industrial average rose 9.25 points or
0.06 percent, to 16,731.59. The S&P 500 gained 3.21
points or 0.17 percent, to 1,927.45. The Nasdaq Composite
added 18.24 points or 0.43 percent, to 4,252.32.
If the S&P 500 closes higher on Wednesday, that will mark
its eighth advance out of the past nine sessions - a run in
which the broad index has set multiple record highs.
In macroeconomic news, the Institute for Supply
Management's non-manufacturing index showed that growth in the
U.S. services sector accelerated more than expected in May and
rose at the fastest pace in nine months. The ADP National
Employment Report showed that fewer private-sector jobs were
added in May than had been anticipated.
"With some data strong and other data weak, we don't have a
clear picture of the market or the economy right now," said Adam
Sarhan, chief executive officer of Sarhan Capital in New York.
"We don't seem to be strong enough to grow without help from
the Federal Reserve, but we do seem to be trending in the right
While economic reports have largely been positive lately,
investors are concerned about any data that could indicate
weakness in Friday's May jobs report.
In company news, Protective Life surged 18.1 percent
to $69.33 in heavy trading after Japan's Dai-ichi Life Insurance
Co agreed to buy the company for $5.7 billion.
The stock of Tibco Software Inc was one of the
Nasdaq's most active, slumping 6.7 percent to $19.40 a day after
the company gave a second-quarter outlook sharply below
NQ Mobile Inc soared 37.1 percent to $10.46, its
biggest one-day advance ever, rising on heavy volume after the
Chinese mobile security software maker said a special committee
had found no evidence of fraud, following an accusation made by
short-seller Muddy Waters Research Group.
(Reporting by Angela Moon; Editing by Jan Paschal)