Wall Street has suffered a mild decline in the first hour of Wednesday's session. The release of disappointing manufacturing data has prompted some light profit taking.
However, the selling pressure remains subdued and the major averages are sitting just below the unchanged mark.
The Dow Jones Industrial Average is down 9.37 points, or 0.06 percent, at 15,205.88. The Nasdaq is lower by 3.88 points, or 0.11 percent, at 3,459.47. The S&P 500 is off 2.01 points, or 0.12 percent, at 1,648.64.
The early dip represents a pause in the upward swing of the past month. The major averages added to their recent gains yesterday, with the Dow and S&P 500 both once again setting new record highs.
Investors are digesting a large amount of economic news today. They are most focused on the results of a regional manufacturing survey, which showed that activity contracted in New York State in May.
The Federal Reserve Bank of New York said its Empire State Manufacturing Index came in at a negative 1.4 for May. This was down from a positive 3.1 in the previous month. A negative reading indicates a contraction in manufacturing activity.
The unexpected decline has raised concerns about the strength of the factory sector. This was underlined by a separate report showing a decline in overall industrial production, with manufacturing output declining for the second consecutive month.
Meanwhile, a separate report provided a look at wholesale inflation. The figures suggested that prices remain under control, keeping pressure off the Federal Reserve to change its accommodative monetary policy.
In corporate news, earnings remain in focus.
Deere & Co. (DE) is losing ground after it revealed its quarterly results. The farm machinery maker beat expectations with its second-quarter earnings, with profits rising 3 percent on higher sales. However, the company trimmed its annual sales growth outlook due in part to a cold snap in the U.S., which has delayed planting.
Shares of Deere are down $3.56, or 3.8 percent, to $90.21 on the reduced outlook.
Meanwhile, Macy's (M) is seeing some buying interest on its earnings figures.
The retailer reported a 20 percent rise in its quarterly profits, as it managed sales growth despite the unseasonably cool spring weather. Earnings beat expectations, and the company raised its dividend and share buyback authorization.
Shares of Macy's are up 58 cents, or 1.2 percent, at $47.97.
Agilent (A) is also gaining ground on its quarterly report.
The scientific instruments maker revealed a quarterly profit that fell 35 percent from last year. Revenue remained flat, while costs rose. Still, the bottom line came in ahead of analysts' expectations, and the company increased the amount approved under its stock buyback plan.
Agilent's stock is up $1.28, or 2.9 percent, to $45.25.
Outside of the earnings reports, Wal-Mart (WMT) is making headlines. The world's biggest retailer says it will conduct in-depth safety inspections at all factories in Bangladesh that produce goods for the company.
Wal-Mart is initiating its own plan rather than joining a pact signed by a group of European retailers. The increased scrutiny of facilities in the south Asian country follows last month's collapse of a factory building that left more than 1,000 workers dead.
Shares of Wal-Mart are little changed, edging up 39 cents, or less than a percent, to $79.17.
Looking overseas, Asian stocks finished the day broadly higher on optimism about U.S. economic growth. Shares were reacting to yesterday's strong performance on Wall Street and the rise took place ahead of the release of today's U.S. economic data.
Japan's Nikkei index rallied to end above the 15,000 mark for the first time since December 2007, helped by a further weakening of the yen. India's Sensex rallied over 2 percent to regain the 20,000 mark on growing hopes of another interest rate cut in June.
Stocks are mixed in Europe. A lackluster session wasn't helped by the U.S. economic data. Germany and France had seen gains earlier in the session but are now showing fractional losses. The U.K. is holding on to a modest gain but is off its high for the session.
Germany's DAX index is down 14.78 points, or 0.2 percent, at 8,324.33. France's CAC 40 is basically flat, down 0.16 points at 3,965.90. The U.K.'s FTSE 100 is up 3.09 points, or about 0.1 percent, at 6,689.15.
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Business News
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.