NEW YORK (CNN/Money) - U.S. stocks extended their gains early Wednesday after a report showed a more robust services sector than economists had believed.

At 10:03 a.m. ET, the Dow Jones industrial average rose 95.60 to 9,783.44. The Nasdaq composite added 13.96 to 1,592.08. The Standard & Poor's 500 index added 3.75 to 1,044.44.

The Institute of Supply Management's index of services sector activity surged to 60.1 in May from 55.3 in April. Economists surveyed by Briefing.com expected the index to rise to 56.

Shares of software maker Manugistics (MANU: Research, Estimates) fell after Goldman Sachs downgraded the stock to "market perform" from "outperform." On Tuesday, the company warned that first-quarter results will miss expectations.

Hanging over any stock action was continued concern about international safety. A deceptively mild period in Israeli-Palestinian tensions came to an end after an explosives-laden car blew up alongside a bus in Northern Israel Wednesday morning, with authorities saying the blast killed 16 on the bus and the bomber.

Tensions in India and Pakistan may be on the road to recovery after the Indian prime minister proposed that the two countries jointly monitor the line of control in the disputed region of Kashmir.

Treasurys were little changed, with the ten-year note yield at 5.03 percent.

In global trade, European markets were mixed at midday, while a tech rebound helped Asian markets close higher. The dollar was a little stronger versus the euro and yen.

Brent crude oil fell 25 cents to $24.20 a barrel in London. Gold prices retreated after the recent runup, falling to $322.60 an ounce.