The Dow closed at its highest level in more than four years on Tuesday after U.S. manufacturing expanded at a faster pace than expected in April, easing jitters about a slowdown in the economic recovery.

The Mortgage Bankers Association releases its Weekly Mortgage Market Index for the week ended April 27 at 1100 GMT, versus the prior week. The index read 697.7 and the refinancing index was 3,715.2 in the previous week.

At 1215 GMT, Automatic Data Processing (ADP) releases its April employment report. Economists expect 177,000 jobs were created in April, versus 209,000 new jobs in March.

Major companies announcing results included Time Warner (TWX.N), Visa (V.N), MasterCard (MA.N), Whole Foods (WFM.O), Symantec (SYMC.O) and Franklin Resources.

The Institute for Supply Management-New York releases its April index of regional business activity at 1345 GMT. In March, the index read 551.8.

U.S. auto sales rose 2.3 percent in April, helped by strong gains at Toyota Motor Corp (7203.T) and Chrysler Group LLC, as American shoppers looked to replace their aging cars and trucks and the broader U.S. economy showed signs of strength.

The Commerce Department releases March factory orders at 10:00 a.m EDT (1400 GMT). Economists expect a 1.6 percent drop, compared with a 1.3 percent rise in February.

BSkyB (BSY.L) posted record nine-month operating profit boosted by strong broadband growth, as Britain's dominant pay-TV group showed few side effects from problems affecting its biggest shareholder - Rupert Murdoch's News Corp (NWSA.O).

The roadshow for Facebook Inc's (FB.O) initial public offering is scheduled to start on Monday, meaning the company's shares should begin trading on May 18, a source familiar with the process said on Tuesday.

European shares rose 0.4 percent on Wednesday as investors had their first chance to react to encouraging U.S. data after a holiday in the previous session.

Germany's manufacturing sector shrank at the fastest pace in nearly three years in April, as export orders plunged, raising questions over whether Europe's biggest economy can continue to drive growth in the euro zone.

The Dow Jones industrial average .DJI gained 65.69 points, or 0.50 percent, to 13,279.32 at the close on Tuesday. The Standard & Poor's 500 Index .SPX rose 7.91 points, or 0.57 percent, to 1,405.82. The Nasdaq Composite Index .IXIC added 4.08 points, or 0.13 percent, to 3,050.44.

(Reporting by Atul Prakash; Editing by Catherine Evans)

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