Business hiring report leads to stock rise

NEW YORK - Stocks closed at their latest all-time highs Wednesday following news that business hiring surged in June, adding to evidence that the U.S. economy is picking up momentum.

ADP, a payroll processer, said businesses added 281,000 jobs last month, up from 179,000 in the previous month. The figure suggests that the government's monthly jobs report, due out Thursday, could also show a significant gain from May.

The stock market climbed back to record levels a day earlier after separate reports showed that manufacturing expanded in China and the U.S., the world's two largest economies.

"We're in the middle of what's been an extended recovery, but there's still a lot of room to go," said Ed Hyland, a global investment specialist at a JPMorgan Private Bank. "We believe that for the stock market as well."

The Standard & Poor's 500 index rose 1.30 points, or 0.1 percent, to 1,974.62. The Dow Jones industrial average gained 20.17 points, or 0.1 percent, to 16,976.24. Both the S&P 500 and the Dow are at all-time highs. The Nasdaq composite fell one point, less than 0.1 percent, to 4,457.73.

Constellation Brands, which makes Corona and Negra Modelo beer, was one of the day's biggest gainers. The stock jumped $2.07, or 2.3 percent, to $90.45 after the company said its fiscal first-quarter net income soared.

Delta Air Lines was the day's biggest decliner. The stock dropped $2.07, or 5.1 percent, to $38.24 after the company said that growth in a key revenue figure slowed in June. Delta said revenue per passenger fell on international routes because of a dip in business travel to Latin America during the World Cup soccer tournament and more passenger-carrying capacity among all airlines. Delta's stock is still up 38 percent this year.

Government bond prices fell. The yield on the 10-year Treasury note rose to 2.62 percent from 2.57 percent on Tuesday. The yield on the note, which rises as prices fall, has climbed from 2.45 percent at the end of May as signs have emerged that the economy is strengthening.

The impact of rising bond yields was also felt in the stock market.

Utilities fell the most of the 10 sectors that make up the S&P 500, declining almost 2 percent. Investors had bought utility stocks at the start of the year as bond yields dropped because they pay rich dividends.

Bank of America rose 25 cents, or 1.6 percent, to $15.85 after analysts at Deutsche Bank raised their rating on the stock, saying that many of the potential negatives have already been identified and priced in. Bond trading should pick up after a slump and more merger activity should also boost fees, the analysts said.