U.S. stocks fell on Wednesday morning after the earnings of a major automaker and a private sector jobs report came in lower than expected.
The Dow Jones Industrials tumbled 152.49 points to 34,963.91, after a sharp rise on Tuesday
The S&P 500 faltered 9.91 points to 4,413.24, from Tuesday’s all-time closing high.
The NASDAQ eked higher 4.51 points to 14,766.06.
Shares of General Motors fell about 7% in early trading, weighing on the broader market, after the automaker missed earnings expectations for the second quarter. The automaker did raise its guidance for a key profit metric for the rest of the year.
A strong earnings season continued after the bell Tuesday with Caesars Entertainment reporting stronger-than-expected results for the second quarter and citing a rebound to pre-pandemic levels of activity. Travel stocks MGM Resorts, Wynn Resorts and Booking Holdings will report after the bell on Wednesday.
Energy stocks struggled in early trading Wednesday, reversing a strong performance in the previous session. Meanwhile, shares of Robinhood surged more than 60%, continuing a volatile jump after last week’s soft initial public offering.
The ADP private payroll survey showed a gain of 330,000 jobs for July, well short of the consensus estimate of 653,000. The Labor Department’s official jobs report, which typically has more impact with investors, will be released on Friday.
The labour market readings come as the delta variant of COVID-19 has spread across the U.S., leading to new restrictions and mandates from some companies and local governments.
Treasury Secretary Janet Yellen will say on Wednesday that enacting the trillion-dollar bipartisan infrastructure bill is key to keeping America’s status as the “world’s pre-eminent economic power.” Her comments come as investors await the final details of the bill, over which the Senate is currently haggling.
Prices for 10-Year Treasurys were static, keeping yields at Tuesday’s 1.18%.
Oil prices tanked $1.52 to $69.04 U.S. a barrel.
Gold prices popped $11.20 to $1,825.30 U.S. an ounce.