For the day, the Dow ended higher by 82.71 points (0.64%) at 13,034.49. Nasdaq ended lower by 22.99 points (0.8%) at 2,973.7. S&P 500 ended higher by 2.23 points (0.2%) at 1,409.28. Dow was trading higher by 115 points earlier during the day
Among the ten economic sectors, utilities was the best performing and technology was hardest hit.
The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Wednesday.
The focus of the U.S. market place remains on the "fiscal cliff" tax increases and spending cuts that is fast approaching. U.S. lawmakers are still jawboning on the matter, with the market place paying less attention to the politicians' rhetoric.
Traders and investors are starting to look ahead to next week's last Federal Reserve FOMC meeting of the year, on December 10 and 11. The "Operation Twist" program ends and the FOMC members must decide whether to extend the bond-buying program. Many believe the Fed will continue to purchase U.S. Treasuries and implement "QE4" at next week's meeting.
In overnight news, Asian stocks rallied on news that Chinese government officials have said they want to stimulate their economy by implementing more construction projects. Also, China's purchasing managers index showed further expansion in November.
There was more dour economic news coming out of the European Union Wednesday, further suggesting that bloc is in recession. Retail sales fell in October, while purchasing manager surveys in the region showed private-sector business activity declined in November, amid reduced consumer spending. Meanwhile, tepid demand at a Spanish government bond auction pushed Spanish bond yields up on Wednesday.
In terms of economic data at Wall Street, the weekly MBA Mortgage Index pointed to a 4.5% rise in new mortgage applications during the past week. Today's reading followed prior week's decline of 0.9%. According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 118K in November. This was above the 125K increase expected by the consensus.
Productivity data for the third quarter showed an increase of 2.9%, which was better than the 1.9% increase that had been reported in the preliminary reading. It was also better than the 2.7% increase that had been broadly expected. Unit labor costs for the third quarter were revised lower to reflect a 1.9% decrease after they had reportedly slipped 0.1% in the preliminary reading. Market had expected that unit labor costs would tick down in the revised reading to reflect a decrease of 0.8%.
Separate report showed that October factory orders showed an increase of 0.8%, which was better than the expected 0.1% decrease. Today's reading follows last month's 4.8% increase. Also, the November ISM Services Index was reported at 54.7, which is ahead of the 53.7 forecast and down from October's reading of 54.2.
Among major stocks under focus, technology stocks were underperforming as Apple traded lower by 6.4%. Earlier, there were reports that COR Clearing has raised its margin requirement for Apple shares to 60% from 30%. While Apple significantly underperformed the broader market, other large cap technology stocks witnessed narrower losses. IBM slipped 0.4% and Google was off by 0.2%.
Elsewhere in tech, Pandora Media slumped 17.5% after reporting its earnings. Although the internet radio operator beat on earnings and revenue, the company guided fourth quarter top and bottom lines below consensus. In addition, the company said its November 2012 audience has increased 58% year-over-year.
Nokia surged 8.3% after the smartphone maker signed an agreement with China Mobile to sell its Widows-based Lumia 920 device.
In M&A news, Freeport McMoRan slumped 14.1% after the company confirmed it will acquire Plains Exploration & Production and McMoRan Exploration in transactions totaling $20 billion.
Bullion metals ended mixed at Comex on Wednesday, 05 December 2012. Yellow metal prices slipped down a bit but silver prices tacked in gains. Comex gold futures closed the U.S. day session slightly lower after giving up early modest gains. Prices dropped to the daily low at late-morning on Wednesday and hit a fresh four-week low. A heavier slate of U.S. economic data on Wednesday provided little impetus for precious metals traders. Gold for February delivery fell $2(0.1%) to settle at $1,693.8 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. It hit a low of $1,686 6 and a high of $1,708.3 during intra day trading. On Wednesday, March silver rose 15 cents, or 0.5%, to settle at $32.96 an ounce. Prices shed 2.5% last week.
Crude oil prices ended modestly lower once again on Wednesday, 05 December 2012 at Nymex. On Wednesday, light and sweet crude oil futures for light sweet crude for January delivery closed lower by $0.62 (0.7%) at $87.88/barrel. Prices fell to a low of $87.46/barrel during intra day trading.
Advancers pulled ahead of decliners on the New York Stock Exchange, where 759 million shares traded. Composite volume surpassed 4.1 billion.
Indian ADRs ended mostly higher on Wednesday. Among financials, while ICICI Bank gained 3.2%, HDFC Bank gained 0.4%. Infosys lost 1.2% and Wipro Technologies gained 0.5%. Elsewhere, copper producer Sterlite Industries gained 4.5% and car maker Tata Motors ended higher by 1.4%. MTNL gained 4.5%.
For tomorrow, the economic data will focus on jobs as November Challenger Job Cuts will be reported at 7:30 ET while weekly initial and continuing claims will be announced at 8:30 ET. In addition, the Bank of England and European Central Bank will both announce rate decisions.
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