Dow refreshes record high amid generally upbeat data

U.S. stocks drifted modestly higher midday Wednesday, with the Dow Jones Industrial Average hitting a new record intraday high, as data from the service sector pointed to continuously improving U.S. economy.

Major stock indices opened narrowly mixed after private payroll processor ADP said the U.S. private sector added 208,000 jobs last month, shy of analysts' expectations.

However, "November continued to show solid job growth above 200, 000," said ADP President and Chief Executive Officer Carlos Rodriguez.

Investors are awaiting the closely-watched U.S. nonfarm payroll report for November due out later this week to better understand the improvement in the labor market and its implications for the Federal Reserve's policy.

The blue-chip Dow climbed to an all-time high of 17,905.33 points, boosted by stronger-than-expected expansion of the U.S. service sector activity.

The Non-Manufacturing Index rose to 59.3 percent in November from October's reading of 57.1 percent, the Institute for Supply Management said in its monthly survey. The latest figure far exceeded market consensus.

Meanwhile, another report by financial data firm Markit showed the U.S. service sector grew at a weaker pace last month. The seasonally adjusted final U.S. Services Business Activity Index registered 56.2 in November, below 57.1 in October.

In addition, U.S. nonfarm business sector labor productivity increased at a 2.3-percent annual rate during the third quarter of this year, which is an upward revision to a 2.0-percent increase reported previously, said the U.S. Labor Department. But unit labor costs fell 1.0 percent in the third quarter, down from a 0.3- percent rise reported earlier, the department added.

Benign wage inflation should give the Fed more leeway to keep its accommodative monetary policy a bit longer.

At midday, the Dow was up 8.83 points, or 0.05 percent, to 17, 888.38. The S&P 500 gained 4.01 points, or 0.19 percent, to 2,070. 56 The Nasdaq Composite Index added 11.60 points, or 0.24 percent, to 4,767.41.

On the previous trading day, U.S. stocks rallied on encouraging construction and auto sales data, propelling the blue-chip Dow to record intraday and closing highs.