US open: Stocks struggle for direction after raft of economic data

US equities moved in tight ranges early on Wednesday, as investors analysed a number of important economic reports.

Shortly after 1500 GMT, the Dow Jones Industrial Average was down 12 points to 17,905.32, while the S&P 500 and the Nasdaq were respectively one point lower and and five points higher.

ADP payroll meets expectations

On the economic data front, the US private sector generated slightly more jobs than expected last month, data released on Wednesday showed.

According to private consultancy ADP, employers added 182,000 jobs in October compared with a downwardly revised 190,000 reading in the previous month and with analysts’ expectations for a 180,000 reading.

“For Friday’s official employment report from the Labor Department, we expect nonfarm payroll growth of 175k and a one-tenth decline in the unemployment rate, to 5.0%,” analysts at Barclays said in a note.

Elsewhere, the Institute for Supply Management's (ISM) non-manufacturing index, which surveys the sector's purchasing and supply executives, climbed to 59.1 last month from 56.9 and compared with analysts’ expectations for a 56.5 reading.

The US monthly trade deficit narrowed sharply to $40.8bn in September, down from the revised estimate of $48.0bn in August and compared with analysts’ forecast of $41bn.

Meanwhile, the Mortgage Bankers Association said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, declined 0.8% in the week ended 30 October.

Still to come, New York Fed president William Dudley will give a press briefing on research on income inequality at 1930 GMT, while Fed vice chairman Stanley Fischer will speak to the National Economists Club at 2300 GMT.

Mixed earnings

In company news, electric car maker Tesla surged 8.98% after it reiterated its sales guidance for the remainder of the year, despite posting a wider quarterly loss late on Tuesday.

Handmade and vintage good marketplace Etsy tumbled 5.98% after posting a bigger net loss and issuing a warning over fourth quarter profit, while online deals firm Groupon slumped 30.9% after issuing a weak outlook and naming a new chief executive.

Lumber Liquidators reversed earlier losses and surged 11.5% despite posting a quarterly loss, while Michael Kors rose 4.06% after profits and revenue soared.

Avon Products tanked 15.7% after profit fell short of expectations, while Facebook, Qualcomm and Whole Foods Market are on tap after the close.

Elsewhere, Asian equity markets rose on Wednesday, as Chinese stocks jumped on speculations Beijing will open a trading link between Shenzhen and Hong Kong by the end of the year. European markets rallied after European Central Bank president Mario Draghi hinted the central bank was ready to implement more stimulus measures in December.

Oil prices edged lower, with West Texas Intermediate sliding 0.55% to $47.64 a barrel and Brent crude gaining 0.68% to $50.20 a barrel.

The dollar rose 0.21% against both the pound and the yen rose 0.67% against the euro, while gold futures edged 0.18% to $1,119.84.