As oil prices slipped after data showed U.S. crude stockpiles touched record highs, Wall Street edged lower on Wednesday. After a report from the American Petroleum Institute (API) showed that a rise in crude stockpiles was much higher than estimates, the U.S. crude fell about percent. Wall Street closed sharply higher on Tuesday, what helped the S&P 500 claw back most of its losses in the past two months. The index is now down only about 3 percent for the year, after it had fallen as much as 10.5 percent.
Jeffrey Saut, chief investment strategist at Raymond James Financial in Florida “The market got severely overbought yesterday”. “It would not be surprising to see stocks pull back a little bit here.” At 9:41 a.m. ET (1441 GMT), the Dow Jones industrial average was down 34.25 points, or 0.2 percent, at 16,830.83.
Shares of Monsanto were down 5 percent at $87.85 after the company slashed its 2016 profit forecast. The stock was the second biggest drag on the S&P 500. Where the S&P 500 was down 2.64 points, or 0.13 percent, at 1,975.71 and the Nasdaq Composite index was down 1.29 points, or 0.03 percent, at 4,688.31.Eight of the 10 major S&P sectors were lower, led by the utilities sector’s 1.3 percent decline. The materials sector fell 0.65 percent.
More than expected, data showed, on Wednesday, the U.S. private sector added a higher-than-expected 214,000 jobs in February, signifying solid job growth regardless of market turmoil and worries about a decelerating global economy. The report serves as a precursor to the more comprehensive monthly jobs report by the U.S. Labor Department on Friday.
Progressively investors are facing the prospects of higher interest rates from the U.S. Federal Reserve, even though and at the same time, expecting more monetary stimulus from the European Central Bank and the People’s Bank of ChinaThe U.S. economy remains to show signs of recovery even as China and euro-zone countries struggle to trigger their sputtering economic growth engines, pushing central banks to adopt diverging monetary policies..
Zynga was up 6.9 percent at $2.31 after the “Farmville” creator named a new chief executive and said founder Mark Pincus would be executive chairman.
The Fed will also issue its Beige Book report of anecdotes on business activity at 2 p.m. ET. San Francisco Fed President John Williams is slated to speak later in the day. Declining issues exceeded advancing ones on the NYSE by 1,361 to 1,271. On the Nasdaq, 1,102 issues fell and 1,057 rose. The S&P 500 index showed two new 52-week highs and no new lows, while the Nasdaq recorded nine new highs and six new lows.