Stocks jittery after disappointing jobs report

Stocks traded in a tight range Wednesday after a disappointing report on the jobs market renewed concern about the health of the economy.

The Dow Jones industrial average rose 4 points in early morning trading, but broader indexes were mixed after payroll company ADP said private employers cut jobs in September for the first time in seven months.

Normally such a weak reading on the jobs market would have more of a negative impact on the market. However investors see the report as one more piece of evidence that will get the Federal Reserve to take steps to further stimulate the struggling economy. Some reports early Wednesday had predicted the average would break 11,000.

Expectations are growing that the Fed will take steps to spark growth at its meeting next month, including buying government bonds. Treasury yields, which move opposite their prices, tumbled to their lowest level since January 2009 after the report. The 10-year yield is below 2.4 percent.

More weak economic data in the coming weeks, including any disappointment from Friday's key Labor Department report on employment, could be enough to get the Fed to resume buying Treasurys to try and stimulate borrowing and spending. Japan announced similar measures Tuesday where it also cut a key interest rate to near zero percent.

The U.S. central bank long ago set interest rates at near zero, leaving it few other options but to buy Treasurys to further drive interest rates lower. The move would also make investing in stocks and riskier assets more enticing because yields on bonds would continue to drop.

Private hiring has been slow to pick up as the economy remains sluggish. ADP said private employers cut 39,000 jobs last month.

Uncertainty about costs from health care and financial regulatory reform as well as potential changes to taxes have been major reasons companies have shied away from adding new jobs.

The Dow rose 4.31, or less than 0.1 percent, to 10,949.03 in early morning trading.

The Standard & Poor's 500 index fell 0.39, or less than 0.1 percent, to 1,160.36, while the Nasdaq composite index fell 6.28, or 0.3 percent, to 2,393.55.