US STOCKS-Wall St jumps on strong data ahead of Fed statement

                                
   * FOMC statement on rates and economy due
                                
 * U.S. dollar falls against basket of currencies
                                
 * Services sector grows for second month in a row
                                
 * U.S. private sector sheds jobs at slowest pace in a yr
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
  (Updates to morning trading)
                                
 By Rodrigo Campos
                                
 NEW YORK, Nov 4 (Reuters) - U.S. stocks rose broadly on Wednesday on
positive economic data and ahead of a Federal Reserve statement on interest
rates and the economy that is expected to keep government support in place.
                                
 Data showed the services sector grew in October for a second straight
month, while U.S. companies reduced jobs last month at the slowest pace in more
than a year. [ID:nN04545735]
                                
 "The (services sector gauge) is a little lower than expectations, but it
still shows improvement, and that's what the market is reacting to," said Alan
Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio.
                                
 "Along with the positive (jobs) number, we're getting a good market
reaction. The data gives the bulls a little bit of fuel."
                                
 The Dow Jones industrial average <.DJI> jumped 136.79 points, or 1.40
percent, to 9,908.70. The Standard & Poor's 500 Index <.SPX> gained 14.31
points, or 1.37 percent, to 1,059.72. The Nasdaq Composite Index <.IXIC> rose
21.66 points, or 1.05 percent, to 2,078.98.
                                
 Health insurers gained as investors bet that key Republican victories
around the United States could slow U.S. President Barack Obama's healthcare
reform package. The Morgan Stanley Healthcare Payor index <.HMO> rose 7.1
percent.
                                
 The statement from the Federal Open Market Committee is due at about 2:15
p.m. EST (1915 GMT). Expectations are for the Fed to keep interest rates near
zero, and reaffirm that policies supporting the economy will stay in place for
some time, even as signs of recovery mount.
                                
 "The likelihood is (the Fed) will keep the language almost identical to the
last statement, while highlighting the slightly better economic news," said
Michael Sheldon, chief market strategist at RDM Financial in Westport,
Connecticut.
                                
 "Quantitative easing will remain in effect into the new year, meaning
financial markets will continue to have large amounts of liquidity, and will
help promote risk taking."
                                
 The U.S. dollar stumbled 0.7 percent against a basket of currencies <.DXY>
on growing risk appetite.
                                
 (Additional reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)