Stocks rise After ADP says employment grew; Treasuries retreat

March 7 (Bloomberg) -- Stocks rose, rebounding from the biggest drop of 2012, while Treasuries declined after a report showed U.S. companies increased hiring and more investors signed on to a Greek debt swap.

The Standard & Poor’s 500 Index climbed 0.3 percent and the Stoxx Europe 600 Index added 0.4 percent at 10:21 a.m. in New York. The S&P GSCI index of 24 commodities was little changed as gasoline and silver led gains, while natural gas, coffee and aluminum tumbled more than 1 percent. Oil fluctuated. Ten-year Treasury yield added two basis points to 1.97 percent. The euro gained less than 0.1 percent to $1.3114 as the shared currency strengthened against 10 of 16 major peers.

U.S. companies added 216,000 workers last month, according to data based on payrolls from ADP Employer Services. Investors with holdings amounting to 39.3 percent of the Greek bonds eligible for the nation’s debt swap agreed to sign on, moving the country closer to the biggest sovereign restructuring in history. Yesterday’s slide erased more than $1 trillion from global equities as a report showed Europe’s economy shrank and investors awaited details on Greece’s debt deal.

“The data coming out of the U.S. is supportive of growth,” Stephen Kylander, Boston-based senior portfolio manager at RBC Global Asset Management (U.S.) Inc., said in a telephone interview. His firm oversees $250 billion in assets. “The valuations aren’t particularly stretched. It’s important that we have stability in Europe. We wouldn’t want to have a significant default in Greece that is not orderly.”

Retreat Halted

The S&P 500 halted a three-day, 2.2 percent retreat. The report from ADP Employer Services comes two days before the Labor Department’s monthly payrolls data, which is forecast to show an increase of 225,000 private jobs and total nonfarm payrolls growth of 210,000.

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. advanced more than 1 percent to pace gains among financial companies. Apple Inc. advanced before the company introduces the third generation of its iPad tablet computer later today.

The Stoxx 600 recovered after tumbling 2.7 percent yesterday, its biggest drop since November. Admiral Group Plc surged 9.5 percent today as the U.K. insurer said full-year profit increase 14 percent. Cobham Plc, a designer of equipment for the aerospace industry, jumped 13 percent as earnings topped estimates.

Emerging Markets, Oil

The MSCI Emerging Markets Index retreated 0.4 percent, heading for a third consecutive decline and the lowest close since Feb. 1. The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong slid 1.3 percent. Benchmark indexes fell 0.2 percent in India and 0.9 percent in South Korea.

Brent crude gained 0.4 percent to $122.43 a barrel and West Texas intermediate oil slipped 0.1 percent to $104.56. Copper lost 0.3 percent to $3.7255 a pound.

In European bond markets, 10-year Italian yields lost nine basis points to 4.98 percent and Spanish yields fell three basis points to 5.12 percent. Ten-year Greek yields were little changed at 36.55 percent.

The 30 members of the private creditor-investor committee for Greece who plan to participate in the swap hold an aggregate 81 billion euros of Greek debt, or 39.3 percent of the Greek debt eligible for the swap, according to the email today.

The Greek government said it will use collective action clauses to compel bondholders to accept its debt restructuring if it receives sufficient consents from investors. The goal of the exchange that runs through March 8 is to reduce privately held Greek debt by 53.5 percent, helping to avert a disorderly default.

Bloomberg News

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