Investing.com -- U.S. stocks struggled for direction Wednesday, as investors weighed stronger-than-expected jobs data and rising Middle East tensions.
By 12:51 p.m. ET (1651 GMT), the Dow Jones Industrial Average contract fell 2 points, or 0.01%, the S&P 500 index fell 0.02%, and the NASDAQ Composite gained 0.1%.
ADP (NASDAQ:ADP) employment rises more than expected
The ADP National Employment Report, released earlier Wednesday, indicated that U.S. private payrolls increased by 143,000 September, topping estimates for 103,000, signaling underlying strength in the economy.
The ADP report was published ahead of Friday's closely watched employment report for September from the Labor Department's Bureau of Labor Statistics.
The Fed is monitoring the labor market closely after reiterating that any unexpected weakening would prompt it to take action.
Richmond Fed President Barkin said Wednesday that the median Fed policy outlook for the rest of 2024 was for 50 basis points of cuts. With just two meetings remaining this year, the odds continue to favor a 25bps point at the November meeting, according to Investing.com's Fed Rate Monitor Tool.
Middle East hits risk sentiment
The main indices were negative territory, however, after Iran launched a barrage of missiles at Israel late Tuesday as retaliation to Israeli strikes on Lebanon-based Hezbollah.
Israeli Prime Minister Benjamin Netanyahu promised a retaliation to Tehran's airstrikes, saying in a statement that Iran "made a big mistake" and "will pay for it."
The US has also said there will be "severe consequences" for Tehran's actions, with Defense Secretary Lloyd Austin adding that Washington is "well-postured" to defend its interests in the Middle East.
Although the situation has the potential to deteriorate further, UBS expects it will "stop short of an all-out war between Israel and Iran, including their respective allies."
Nike slumps after withdrawing forecast; Tesla misses Q3 deliveries miss estimates
Nike (NYSE:NKE) stock fell over 5% after the US athletic apparel maker withdrew its full-year financial forecast and posted a 10% slump in quarterly revenue.
The results come as Nike undergoes an executive-level shake-up that will see boss John Donahoe replaced by company veteran Elliott Hill. Donahoe had overseen a period of weak performance fueled by stiff competition in the $150 billion a year global sneakers market.
Humana (NYSE:HUM) stock fell 15% after data showed that the proportion of the health insurer's membership enrolled in four-star Medicare plans and above for next year fell sharply.
Tesla (NASDAQ:TSLA) stock fell over 3% after the EV manufacturer reported third-quarter vehicle deliveries below estimates as incentives and low-cost financing failed to lift demand for its aging models in a highly competitive market.
Despite missing estimates, Tesla's deliveries numbers are a "clear improvement from 1H and we believe getting in the range of 1.8 million for the year is still the key and important bogey," Wedbush said Wednesday, maintaining its outperform rating on the stock.
Harley-Davidson Inc (NYSE:HOG) fell more than 3% after Baird downgraded the motorcycle maker to neutral from buy, citing worries about third-quarter.
Energy stocks give up some following surprise rise in U.S. inventories
Energy stocks cut some gains Wednesday as unexpected build in domestic crude stocks blunting an earlier rally on rising concerns about a potential hit to output from the Middle East amid rising tensions in the region.
Still, oil prices were held back by data showing US crude inventories unexpectedly incresaed by 3.9 million barrels for the week ended Sept. 27, confounding expectations of a decline of about 2.1M barrels, according to data from the American Petroleum Institute.
The official government inventory report is set to be released later in the session.
(Peter Nurse contributed to this story)