U.S. stocks declined in early trade on Wednesday despite upbeat private sector employment report from ADP as commodities and natural resources stocks were hurt by strong dollar.
The S&P 500 Index declined 1.62 points, or 0.13 percent, to trade at 1,268.43 at 10:00 a.m. EDT. The Dow Jones Industrial Average declined 16.76 points, or 0.14 percent, to trade at 11,674.42. The Nasdaq Composite Index fell 0.12 percent.
The dollar advanced 1.33 percent against euro and 1.33 percent against yen, while crude oil futures declined 1.20 percent to $88.31/barrel and gold futures fell 0.93 percent.
Among the Dow components, Alcoa declined 2.42 percent, Chevron fell 1 percent and Exxon Mobil declined 0.68 percent.
The U.S. private sector employment saw the largest monthly gain in December. On seasonally adjusted basis, nonfarm payrolls rose 297,000 in December from the slightly revised down increase of 92,000 in November, while economists estimated an increase by 100,000.
Much of the increase was seen in the service-providing industry, which grew by 270,000 in December. The rise is the largest monthly increase in the history of the report, as well as the eleventh consecutive monthly gain.
Family Dollar Stores led the declines in retail stocks as its results and outlook fell short of analysts’ expectations. Its first quarter net income rose to $74.3 million or $0.58 per share compared to $67.6 million or $0.49 per share last year and against analysts expectation of $0.61 per share.
Trident Microsystems Inc. (NASDAQ:TRID) shares declined 17.28 percent as the company lowered its fourth quarter revenue outlook and widened fourth quarter adjusted operating loss guidance due to order cancellations and weaker demand for set-top box products.
Mosaic Co (NYSE:MOS) shares rose 1.81 percent as the company reported higher second quarter profit on the back of higher phosphate selling prices and potash sales volumes.
On Tuesday, US stocks ended mixed, and traders apparently were unimpressed by some good economic data on factory orders and auto sales, while commodities dropped on likely profit-taking.
European stock markets are currently trading lower with FTSE 100 down by 3.44 points, DAX30 down by 79.83 points and CAC 40 down by 38.82 points.