Stocks are showing a lack of direction in early afternoon trading on Wednesday, as some traders have chosen to remain on the sidelines ahead of the release of the government's job reports later in the week. The major averages are currently on opposite sides of the unchanged mark by slim margins.
This morning, private payroll processor ADP reported that private sector employment continued to decrease in the month of November, although the report showed a continued slowdown in the pace of job losses.
ADP noted that November was the eighth consecutive month during which the decline in employment was less than in the previous month. With the continued slowdown in the pace of job losses, the decrease in jobs in November was the smallest since July of 2008.
Separately, the Energy Information Administration reported that crude oil inventories unexpectedly rose for the week ended November 27th. Crude oil inventories climbed by 2.1 million barrels last week, surprising analysts, who had projected a drop of 1.3 million barrels.
The report boosted selling pressure in oil futures, as light sweet crude for January has dropped to $76.45 a barrel, down $1.92 on the session. Prices earlier fell as low as $76.26 barrel.
Shortly, market focus is likely to turn to the Federal Reserve's latest Beige Book report, which is slated for a 2:00 p.m. release. The report will give an account of economic conditions in each of the 12 Federal Reserve districts.
The major averages currently continue to turn in a mixed performance, with the tech-heavy Nasdaq holding onto a modest gain. The Nasdaq is currently up 4.65 at 2,180.46, while the Dow is down 41.49 at 10,430.09 and the S&P 500 is down 2.71 at 1,106.15.
Sector News
Airline and gold stocks are holding onto strong gains in early afternoon trading, with the NYSE Arca Airlines Index and the NYSE Arca Gold Bugs Index up by 2.7 percent and 1.5 percent, respectively.
The airline index has reached its best intraday level in roughly two months amid the retreat by the price of oil, while the gold index has reached a fresh twenty month intraday high as the price of gold is seeing another rally to fresh all-time highs.
Telecommunication stocks are also posting substantial gains, driving the NYSE Arca Telecommunication Index up by 1.1 percent. With the gain, the index has reached its best intraday level in fourteen months.
Trucking, commercial real estate and utility stocks are also notably higher, while moderate weakness has emerged among banking, oil service and healthcare provider stocks.
Stocks In The News
Santarus Inc. (SNTS) is surging higher in early afternoon trading after announcing that the FDA approved Schering-Plough's (SGP) new drug application for Zegerid OTC Capsules for over-the-counter treatment of frequent heartburn.
Santarus earned a $20 million milestone payment upon the approval of Zegerid OTC and may be entitled to receive up to an additional $37.5 million in sales milestones. The stock has jumped by 17 percent, reaching its best intraday level in roughly two and a half years.
Charming Shoppes (CHRS) is also on the rise after the company reported that its third-quarter net loss narrowed to $0.42 per share from $0.73 per share in the previous year. The stock has risen by 1 percent, although it remains in a one-month trading range.
On the other hand, Walgreen Co. (WAG) is retreating after the firm's November sales rose by 3.9 percent, short of the 6.1 percent sales growth forecast on Wall Street. The stock has slipped by 3.7 percent, falling to its worst intraday price in roughly one month's time.
In Focus: Private Payrolls Data
As mentioned above, ADP reported that non-farm private employment fell by 169,000 jobs in November following a revised decrease of 195,000 jobs in October. Economists had been expecting a decrease of about 150,000 jobs compared to the loss of 203,000 jobs originally reported for the previous month.
Commenting on the data, Peter Boockvar, equity strategist for Miller Tabak, said, "There remains no question that the pace of job losses has slowed, but the path to healthy job gains I believe will still be unfortunately long."
The bigger than expected drop in employment shown by the ADP report may raise some concerns about the outlook for the Labor Department's employment report due to be released on Friday.
Other Markets
In overseas trading, stocks markets across the Asia-Pacific region saw solid gains on Wednesday. Japan's benchmark Nikkei 225 Index advanced by 0.4 percent, while Hong Kong's Hang Seng Index rose by 0.8 percent.
Meanwhile, the major European markets closed modestly higher. The U.K.'s FTSE 100 Index and the German DAX Index gained 0.3 percent and 0.1 percent, respectively, while the French CAC 40 rose by 0.5 percent.
In the bond markets, treasuries are continuing to see modest weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.290 percent, posting a gain of 1.5 basis points.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.