Stocks close higher after payroll report

• Wall Street likes Romney's policies for stocks, investors expect an Obama win
• If Romney tops Obama investors "won't know what to do"
• Investors looking for a 'game changer' that significantly alters polls

NEW YORK -- Stocks closed modestly higher Wednesday after a survey of private hiring reported businesses added only 162,000 jobs in September.

The Dow Jones industrial average ended up 13 points, or 0.1%, to 13,495. The broader Standard & Poor's 500 index closed up 5 points, or 0.4%, to 1,451, and the tech-laden Nasdaq composite index finished up 15 points, 0.5%, to 3,135.

After trading flat for most of the morning, stocks rallied on the economic reports but the gains were pared by the trading session's close.

Economic indicators this week will culminate with Friday's September jobs report. Wednesday's monthly report from payroll servicer ADP was weak but better than expected.

Yields on 10-year notes were at 1.62%, lowest in about a month as investors focused on upbeat news about the economy and the upcoming presidential debates, which will be televised.

Crude oil prices dropped $.3.36, or 4%, to $88.53, lowest in about two months, as demand worries heated up.

And the price of gold edged $4.20 higher to $1,779.80 on worries that the 'fiscal cliff' facing policymakers later this year won't be resolved in time to avoid sharply higher taxes and huge budget cuts.

European markets ended Wednesday mixed, and Asian markets also closed mixed.

Round 1 of Obama vs. Romney kicks off Wednesday night in Denver in the first of three debates that could determine who the next president is.

President Obama and Republican challenger Mitt Romney have already laid out their basic positions on all things financial. And while Wall Street would love to hear more of the nitty-gritty details on how they plan on fixing the economy, few expect to get the fine-print, footnote versions of each candidate's plan.

So what could happen at the first high-profile face-off between the two presidential contenders that could jolt financial markets? A decisive knockout win for Romney.

Why? Polls show Obama in the lead. And while Wall Street thinks Romney's policies are better for stocks, investors have all but penciled in an Obama win.

Intrade, an online prediction market, puts Obama's chances of winning at 75%, vs. just 25% for Romney. A stellar performance by Romney that puts the president on the defensive could force investors to reassess their views.

"The stock market will be looking at the debate for a 'game changer' that significantly alters the polls and makes a Romney win more likely," says James Paulsen, chief investment strategist at Wells Capital Management.

If Romney KOs Obama in bout No. 1, it is sure to inject fresh uncertainty into the political equation, says Brian Belski, chief investment strategist at BMO Capital Markets.

"Investors," he says, "won't know what to do until the election is decided on Nov. 6."

Contributing: The Associated Press