Stocks are stuck on opposite sides of the unchanged mark in mid-afternoon trading on Wednesday, as traders have largely shrugged off mixed indicators from the day's private employment data and the Federal Reserve's Beige Book report.
According to the Fed's latest Beige Book report released this afternoon, economic conditions have generally improved modestly in recent weeks.
Eight of the twelve Fed districts indicated some pickup in activity or improvement in conditions, while the remaining four districts reported that conditions were little changed and/or mixed.
Earlier today, 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.
In other news, Treasury Secretary Timothy Geithner announced that the Obama administration is approaching a point at which it will begin to wind down the $700 billion TARP program, with details forthcoming in the next few weeks.
Speaking before the Senate Agriculture Committee, Geithner also defended the administration's push to regulate over-the-counter derivative instruments.
The major averages have all seen choppy movement in recent dealing, extending their lackluster performance. While the Nasdaq is currently up 7.56 at 2,183.37, the Dow is down 20.48 at 10,451.10 and the S&P 500 is down 0.56 at 1,108.30.
Dow Components
Just over half of the Dow components are moving lower, contributing to the modest loss being shown by the blue chip index in mid-afternoon trading.
The Dow's financial components are some of the day's worst performers, with Bank of America (BAC) and JP Morgan Chase (JPM) posting losses of 1.7 percent and 1.3 percent, respectively. Despite the pullback, the stocks remain rangebound.
American Express (AXP) is also retreating, although by a more modest margin, posting a loss of 1 percent. Caterpillar (CAT), General Electric (GE) and Microsoft (MSFT) are seeing comparable losses but remain in a trading range.
On the other hand, Alcoa (AA) is the Dow's leading percentage gainer, recording a gain of 4.9 percent. With the advance, shares of the aluminum producer continue to move off of the nearly one-month closing low set on Monday.
Verizon (VZ) is also advancing, posting a gain of 1.1 percent. The stock is poised to end the session at its best closing price in eight months.
Sector News
Airline and gold stocks continue to see strength in mid-afternoon trading, with the NYSE Arca Airlines Index and the NYSE Arca Gold Bugs Index up by 3.5 percent and 1.6 percent, respectively. Airlines are benefiting from a pullback by the price of oil, while gold stocks have advanced following another record rally for gold futures.
Semiconductor stocks are also higher, with the Philadelphia Semiconductor Index up by 1.4 percent. The index is being helped by shares of Micron Technologies (MU), which are advancing by 4.7 percent. The gain lifted the stock to its best intraday price in six weeks earlier in the session.
Trucking, steel and utility stocks are also seeing notable gains, while oil service stocks are some of the day's worst performers amid the drop in the price of oil. The Philadelphia Oil Service Sector Index is currently down by 1.3 percent but remains in a trading range.
Banking, software and natural gas stocks are also moving lower, down offsetting some of their recent gains.
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 closed up 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 3.288 percent, posting a gain of 1.3 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.