U.S. stocks break a run of losses

NEW YORK - Encouraging economic news and a rare boost in oil prices helped give the stock market its first gain in the new year Wednesday.

All three major U.S. indexes climbed more than 1 percent. The Dow Jones industrial average rose 212.88 points, to close at 17,584.52. The Nasdaq composite gained 57.73 points, to 4,650.47. The Standard & Poor's 500 index gained 23.29 points, to 2,025.90.

The major indexes started climbing from the opening bell, after a report from payroll processor ADP showed businesses hired more workers last month. Companies added 241,000 in December, up from November.

Jeff Kravetz, regional investment director at U.S. Bank Wealth Management, said the news offered more evidence that the U.S. economy is on steady ground.

Before Wednesday, falling oil prices and concerns about the global economy had knocked the S&P 500 down 2.7 percent, its worst start to a year since 2008.

"Part of what we're seeing today is simply a reversal after five days of declines," said Michael Arone, chief investment strategist at State Street Global Advisors.

The recent turbulence is likely just a pause in the stock market's steady run, Arone said. "It's perfectly normal market activity. Things tend not to go up or down in a straight line."

Markets barely moved following the release of minutes from the Federal Reserve's December policy meeting. Fed officials discussed various risks to the economy, but concluded that the recent big drop in oil prices was likely to end up boosting growth.

On Wednesday, the price of oil stabilized near a six-year low. U.S. crude rose 72 cents to close at $48.65 a barrel on the New York Mercantile Exchange. The gain came after news of a decline in U.S. crude inventories and was only the second in nine trading days.

Brent crude, a benchmark for international oils used by many U.S. refineries, rose five cents to close at $51.15 in London.

Crude has fallen by more than half since June as supplies have risen. Lower energy costs are a boon to consumers and businesses, but some see the plunge as a worrying sign of weakness in the global economy.

Among companies, JCPenney soared $1.33, or 20 percent, to $7.89 after the beleaguered retail chain posted solid sales late Tuesday. For the nine-week holiday shopping season, Penneys reported sales growth of nearly 4 percent over the same 2013 period.

Eli Lilly predicted higher revenue and earnings this year as it tries to recover from the loss of patents protecting key drugs. But the forecast fell short of Wall Street's expectations. The company's stock fell 49 cents, or 0.7 percent, to $69.23.

In the bond market, prices for U.S. government Treasurys fell. The yield on the 10-year Treasury note edged up to 1.96 percent, from 1.94 percent.