By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Oil, gold prices rise

NEW YORK (MarketWatch) -- U.S. stocks were ticking higher Wednesday, partly driven by a gains in energy and materials as oil prices staged a modest rally.

The S&P 500 (SPX) and the Dow Jones Industrial Average (DJI) hovered near record-closing levels, while the Nasdaq Composite (RIXF) also edged higher.

In economic news, a reading of private sector employment showed that hiring slowed in November, though employers added more than 200,000 jobs in seven of the past eight months. The productivity for the third quarter was revised upwards, however, labor costs fell, pointing at lagging wages.

Meanwhile, U.S. services companies reported that growth ramped up in November, with a gauge of activity rising to 59.3% from 57.1% in October, according to a survey of senior executives released Wednesday by the Institute for Supply Management.

"Luke-warm reports are the new good," said Joseph Saluzzi co-founder and co-head of equity trading at Themis Trading, a brokerage firm, commenting on Wednesday's data,

"It's not too hot and not too cold, and on Wall Street there is a belief that the U.S. economy is immune to global deflationary problems. But it is a matter of time before deflation catches up here as well," Saluzzi said.

Busy economic calendar:Private-sector hiring slowed in November, as employers added 208,000 jobs, ADP reported Wednesday. Analysts watch the data closely, as it is used to get a feel for the larger government employment report due Friday. The correlation between those two numbers isn't foolproof, though.

U.S. companies and workers were more productive in the third quarter than initially reported, but labor costs fell sharply for the second straight time in a sign that wages continue to lag behind. Productivity grew at a revised 2.3% annual pace instead of 2%, newly revised government figures show.

U.S. services companies reported that growth ramped up in November, with a gauge of their activity rising to 59.3% from 57.1% in October, according to a survey of senior executives released Wednesday by the Institute for Supply Management.

The Federal Reserve's Beige Book is due at 2 p.m. Eastern. The report is a collection of anecdotes from Fed contacts around the country and gives the central bank a feel for overall economic conditions ahead of its next meeting, scheduled for December 16-17.

The European Central Bank also meets this week, on Thursday. The pressure is expected to be on ECB President Mario Draghi and officials to "provide when and how eurozone stimulus will appear tomorrow", given recent disappointing eurozone PMI figures, said Connor Campbell, financial analyst at SpreadEx. The composite PMI fell to a 16-month low in November, weaker than the initial estimate.

Stocks for Wednesday: Brown-Forman Corp. (BFB) reported increased sales of its Jack Daniel's whiskey but missed analysts' second-quarter profit expectations and cut its outlook on worries about a strengthening U.S. dollar. The stock was the worst performer on the S&P 500.

Energy sector stocks rose sharply, with major oil producers, such as Exxon Mobile Corp (XOM) and ConocoPhillips (COP) up 0.9% and 1.6% respectively. Energy companies dropped more than 25% since this summer when oil prices peaked in June at $110 a barrel.

Shares of Abercrombie & Fitch Co.(ANF) initially dropped following a lower-than-expected full-year earnings forecast from the clothing retailer, however shares rose in regular trade.

Apparel retailers Guess Inc.(GES) and Aéropostale Inc.(ARO) are expected to report after the close.

Puma Biotechnology Inc.(PBYI) tanked after the pharmaceutical company delayed its breast-cancer drug application to early 2016. See Stocks to Watch

Other markets: European stocks posted moderate gains across the board despite downbeat eurozone PMI data. The FTSE 100 index was down slightly ahead of Chancellor of the Exchequer George Osborne's Autumn Statement on the government's economic plans.

The dollar rose against the yen (USDJPY) after setting a fresh 7-year high late Tuesday. However, the euro (EURUSD) was at $1.2330, the lowest since August 2012.

January crude (CLF5) was up about $1. American Petroleum Institute data late Tuesday showed a steep fall in U.S. crude inventories. Gold prices (GCG5) were trading higher, just over $1,206 an ounce. Read: T. Boone Pickens predicts $100 a barrel is coming back

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