US close: Stocks erase early gains on geopolitical fears, poor data

(Sharecast News) - US stocks pulled back on Wednesday after three days of solid gains sent the Dow and S&P 500 to new heights, with investors showing caution as geopolitical tensions ramped up and economic data mostly missed estimates.

Despite a positive start, the Dow finished 0.9% lower at 48,996.08 and the S&P 500 slipped 0.3% to 6,920.93, though the Nasdaq pushed 0.2% higher to 23,584.27.

Both the Dow and S&P 500 joined a number of other global indices to hit fresh all-time highs the previous session as investors continued to digest Donald Trump's controversial cross-border military operation on Venezuela at the weekend, which saw Venezuelan president Nicolas Maduro moved to a federal jail in New York on 'narco-terrorism' charges.

Trump has said Venezuela would be "turning over" between 30m and 50m barrels of "High Quality, Sanctioned Oil" following an agreement struck with Caracas, the US president said in a social media post. On Wednesday, energy secretary Chris Wright said the US planned to oversee the sale of Venezuelan oil "indefinitely".

Commodity prices were lower across the board on Wednesday, with metals prices pulling back from record highs and oil prices dragged down by oversupply concerns. WTI crude settled 2% lower at $55.99 a barrel.

In new developments, Trump has now renewed his focus on Greenland as his next potential target for American expansionism, claiming that annexing the region is a "national security priority". The White House said the US president was looking at "a range of options" to take over the semi-autonomous Danish territory, and could potentially use military action to get what he wants.

Several European leaders rallied on Tuesday in support of Denmark, a fellow Nato member, which is opposed to Trump's demands and has challenged his assertions that Chinese vessels are operating in the region in large numbers.

Economic data barrage

Aside from geopolitics, the release of the ADP employment report for December was garnering some attention after showing the private employers added just 41,000 jobs in December, up from a revised 29,000 reduction in November but short of the 47,000 expected.

US factory orders fell by 1.3% in October, following a 0.2% increase the previous month, coming in worse than the 1.2% decline predicted by economists.

The ISM services PMI increased more than expected to 54.4 in December from 52.6 the previous month, surprising the market which expected a drop to 52.3.

Meanwhile, the JOLTS survey showed that job openings totalled just 7.146m in November, down from a revised 7.449m in October and well below the 7.6m consensus forecast. This was the lowest level of openings since December 2020.

WBD rebuffs Paramount Skydance

Shares in Warner Bros Discovery edged higher after its board unanimously rejected Paramount Skydance's revised takeover offer, reiterating its preference for the $72bn tie-up with Netflix announced last month. WBD released a statement to shareholders before markets opened, reiterating its recommendation to vote in support of the Netflix deal which offers "superior value" than PSKY's bid.

Stocks across America's energy industry were closely watched as markets continue to assess the implications of Trump's assault on Venezuela. Chevron, which remains the only remaining major American producer in Venezuela, fell for the second day after an FT report suggested it is considering a bid with Quantum Capital Group for $22bn of Lukoil assets.

Other producers such as ExxonMobil and ConocoPhillips also fell, along with oilfield services groups SLB and Halliburton, though refiners Valero and Phillips 66 were in demand.

Housebuilders were under pressure after Trump said he wants to ban largest institutional investor from buying single-family homes in an effort to improve affordability and address a severe housing shortage. DR Horton, Lennar and NVR all fell sharply.

Dow Jones - Risers

Intel Corp. (INTC) $40.04 6.47%

Amgen Inc. (AMGN) $341.64 3.47%

Johnson & Johnson (JNJ) $207.49 1.32%

Salesforce.Com Inc. (CRM) $265.85 1.22%

Microsoft Corp. (MSFT) $483.47 1.04%

McDonald's Corp. (MCD) $304.16 0.46%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $596.49 -4.26%

Nike Inc. (NKE) $63.22 -3.26%

Dow Chemical Co. (DOW) $24.80 -2.82%

JP Morgan Chase & Co. (JPM) $326.99 -2.28%

Unitedhealth Group Inc. (UNH) $341.70 -2.08%

3M Co. (MMM) $162.85 -1.99%

International Business Machines Corporation (CDI) (IBM) $296.73 -1.90%

Goldman Sachs Group Inc. (GS) $941.02 -1.51%

Walt Disney Co. (DIS) $112.91 -1.45%

American Express Co. (AXP) $378.22 -1.39%

S&P 500 - Risers

Intel Corp. (INTC) $40.04 6.47%

Carmax Inc. (KMX) $43.22 5.35%

Regeneron Pharmaceuticals Inc. (REGN) $776.54 4.60%

AbbVie Inc (ABBV) $233.42 4.24%

Bristol-Myers Squibb (BMY) $56.72 4.23%

Eli Lilly and Company (LLY) $1,108.14 4.14%

Incyte Corp. (INCY) $106.66 3.67%

Amgen Inc. (AMGN) $341.64 3.47%

Vertex Pharmaceuticals Inc. (VRTX) $468.38 3.37%

Valero Energy Corp. (VLO) $183.92 3.14%

S&P 500 - Fallers

Skyworks Solutions Inc. (SWKS) $59.82 -9.73%

Western Digital Corp. (WDC) $219.38 -8.89%

Qorvo, Inc. (QRVO) $88.12 -7.52%

NRG Energy Inc. (NRG) $148.97 -6.72%

Seagate Technology Plc (STX) $330.42 -6.71%

Kohls Corp. (KSS) $20.63 -6.60%

Universal Health Services Inc. (UHS) $208.60 -6.02%

Hewlett Packard Enterprise (HPE) $22.43 -5.72%

PVH Corp. (PVH) $66.09 -5.71%

Northrop Grumman Corp. (NOC) $577.01 -5.50%

Nasdaq 100 - Risers

Intel Corp. (INTC) $40.04 6.47%

Regeneron Pharmaceuticals Inc. (REGN) $776.54 4.60%

Incyte Corp. (INCY) $106.66 3.67%

Amgen Inc. (AMGN) $341.64 3.47%

Vertex Pharmaceuticals Inc. (VRTX) $468.38 3.37%

Vodafone Group Plc ADS (VOD) $13.53 3.25%

Alphabet Inc. Class C (GOOG) $314.55 2.51%

Gilead Sciences Inc. (GILD) $121.36 2.46%

Alphabet Inc. Class A (GOOGL) $314.34 2.43%

Biogen Inc (BIIB) $182.61 2.35%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $9.04 -9.85%

Skyworks Solutions Inc. (SWKS) $59.82 -9.73%

Western Digital Corp. (WDC) $219.38 -8.89%

Seagate Technology Plc (STX) $330.42 -6.71%

Wynn Resorts Ltd. (WYNN) $120.53 -3.45%

Texas Instruments Inc (TXN) $192.10 -3.33%

NetEase Inc. Ads (NTES) $146.10 -3.11%

Starbucks Corp. (SBUX) $89.46 -3.10%

CSX Corp. (CSX) $35.05 -2.83%

Sirius XM Holdings Inc (SIRI) $21.03 -2.73%