The Dow Jones Industrial Average and the Nasdaq Composite closed marginally higher on Wednesday as traders assessed the latest economic data and remarks by a Federal Reserve official. The Dow and the technology-heavy Nasdaq rose 0.1% each to 42,196.5 and 17,925.1, respectively. The S&P 500 was little changed at 5,709.5.
Energy led the gainers among sectors, while consumer discretionary and consumer staples saw the steepest declines. In economic news, employment growth in the US private sector accelerated in September, while wage growth cooled, according to data from Automatic Data Processing. "One should never put too much into the monthly ADP report," TS Lombard noted.
"That it came in above expectations raises the probability that the Bureau of Labor Statistics numbers on Friday will fall short." Data from the BLS are expected to show the US economy added 150,000 nonfarm jobs last month, which would mark an acceleration from the 142,000 gain posted for August, as per a survey compiled by Bloomberg. Mortgage applications in the US declined last week as higher interest rates drove refinance activity lower, the Mortgage Bankers Association reported. The US 10-year yield rose 3.8 basis points to 3.78%, while the two-year rate gained 1.6 basis points to 3.64%. Richmond Fed President Tom Barkin indicated that inflation and the labor market in the US continue to pose significant uncertainty, with annual core prices unlikely to fall much further until next year. Last month, the central bank's Federal Open Market Committee lowered its benchmark lending rate by 50 basis points, marking its first cut since March 2020.
"As we decide how fast to move and how far to go during this rate-reduction cycle, we must remain attentive and learn as we progress,” Barkin stated on Wednesday. West Texas Intermediate crude oil increased 1.6% to $70.92 a barrel. Commercial crude stockpiles in the US showed a surprising build last week, according to government data.
Crude futures experienced larger gains on Tuesday amid escalating geopolitical tensions in the Middle East. In company news, Caesars Entertainment announced plans to offer $1 billion of senior notes due 2032 in a private placement. The company's shares rose 5.3%, making it the top gainer on the S&P 500. Conversely, Humana shares plunged nearly 12%, becoming the worst performer on the S&P 500.
The health insurer indicated that the number of members enrolled in 2025 Medicare Advantage plans with a quality rating of at least four stars is expected to drop, likely affecting its 2026 revenue and bonus payments. Nike experienced the most significant decline on the Dow and one of the steepest on the S&P 500, down 6.8%.
Late Tuesday, the sportswear giant withdrew its full-year guidance and postponed its investor day following the recent appointment of a new chief executive. The company's fiscal first-quarter results showed a decline year over year. Gold dropped 0.4% to $2,680.10 per troy ounce, while silver rose 1.2% to $32.13 per ounce..