* Non-manufacturing PMI rises to 57.1 vs est. 53
* Financials rise to more than three-week high
* Oil prices touch highest level since June
* Indexes up: Dow 0.57 pct, S&P 0.42 pct, Nasdaq 0.54 pct
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
Oct 5 Wall Street rose for the first time in
three days on Wednesday, powered by gains in financial and
Activity in the U.S. services sector saw a big rebound in
September, after having slowed to more than a six-year low in
the previous month, a report from the Institute of Supply
The data raised the prospects of a U.S. interest rate hike
in the near term and comes before a carefully watched non-farm
payrolls report on Friday.
Oil prices touched their highest levels since June following
a bigger-than-expected draw in U.S. crude inventories.
"The markets are taking the economic news positively, but it
is a double-edged sword in our opinion because a better economy
means the Fed is going to finally start moving on rates," said
Brad Lamensdorf, co-manager at Ranger Alternative Management in
Traders priced in a near 65 percent chance of a rate hike in
December after the ISM report, according to the CME Group's
The odds had slightly fallen earlier in the day after data
showed that fewer-than-expected jobs were added in the private
sector last month.
A growing number of Fed officials have argued for a rate
hike before the year ends as conditions in the labor market
improve and inflation inches toward the central bank's 2 percent
The S&P financial sector rose 1.46 percent to more
than a three-week high.
Wells Fargo and Bank of America rose 2.5
percent and were the top influences on the benchmark S&P 500
Deutsche Bank's U.S.-listed stock was up 1 percent,
while its Frankfurt-listed shares rose 2.6 percent.
The European Central Bank sees no risk of a banking crisis
in the Euro zone despite some "individual cases" of lenders in
trouble, ECB supervisor Ignazio Angeloni said.
At 11:03 a.m. ET (1503 GMT), the Dow Jones Industrial
Average was up 103.82 points, or 0.57 percent, at
The S&P 500 was up 9.03 points, or 0.42 percent, at
The Nasdaq Composite was up 28.48 points, or 0.54
percent, at 5,318.14.
Seven of the 11 major S&P 500 indexes were higher, with
energy rising 1.4 percent. Exxon Mobil was up
0.6 percent and Chevron 0.9 percent.
Chesapeake Energy rose 5.8 percent and was the
biggest gainer on the S&P.
High-dividend paying sectors telecom services,
consumer staples and utilities were the
Twitter rose 4.4 percent after the Wall Street
Journal reported that the micro-blogging website is expected to
field bids this week.
Advancing issues outnumbered decliners on the NYSE by 1,899
to 922. On the Nasdaq, 1,901 issues rose and 702 fell.
The S&P 500 index showed 15 new 52-week highs and four new
lows, while the Nasdaq recorded 64 new highs and 15 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by