U.S. stocks ended higher on Wednesday, with the Dow Jones industrial average posting a new two-year high for the third day in a row. In U.S. economic news, private sector payrolls increased by 297,000 in December, according to a report from payroll processor ADP. Economists were expecting the report to show that payrolls increased by 100,000 last month, compared to the 93,000 November rise. Meanwhile, outplacement firm Challenger Gray and Christmas reported that planned job cuts fell 59 percent to 530,000 in 2010, reaching the lowest level in 13 years. The two reports come ahead of Friday's monthly job report, where economists expect employers added 135,000 jobs in December, following a 39,000 increase in November. A separate report from the Institute of Supply Management showed that activity in the service sector increased last month. The index rose to 57.1 in December, exceeding economists' expectations, and up from 55 in November. Any reading above 50 signals expansion in the sector. In company news, insurance giant AIG shares surged 7.1 percent on Wednesday after the Securities and Exchange Commission announced on Tuesday that AIG received a $3 billion offer for its Taiwan unit back in November. The U.S. dollar gained against the euro and the yen. Light sweet crude oil for February delivery gained 92 cents to $90.30 a barrel on the New York Mercantile Exchange. Gold futures fell $5.10 to $1,373.70 an ounce. The Dow Jones industrial average rose 31.71, or 0.3 percent, to 11,722.89. The Dow keeps breaking new 2-year highs, as it approaches 11,800, and 19 Dow components rose, with Financials American Express, Bank of America, and J.P. Morgan Chase leading the way. The broader Standard & Poor's 500 index rose 6.36, or 0.5 percent, to 1,276.56. The technology-heavy Nasdaq composite index rose 20.95, or 0.8 percent, to 2,702.20.
