Stocks edged higher in another choppy, thin-volume session Wednesday after investors largely shrugged off news that ISM non-manufacturing index slipped last month and China's latest interest rate increase.
The Dow Jones Industrial Average rose into positive territory, after snapping a five-day rally in the previous session.
Among the blue-chip index, Bank of America and JPMorgan slipped, while DuPont gained.
The S&P 500 and the tech-heavy Nasdaq also turned higher. The CBOE Volatility Index, widely considered the best gauge of fear in the market, gained above 16.
Among key S&P stocks, energy and financials slipped, while consumer staples gained.
“There’s going to be continued volatility in the markets throughout the summer months into early fall,” said Zahid Siddique, portfolio manager of Gabelli Equity Trust. “[But] as the economic indicators begin to improve, there will be less volatility and more stability in the markets by year-end.”
Meanwhile, the ISM non-manufacturing index slipped slightly below estimates to 53.3 in June. Economists expected the index to fall to 54.0.
“The market really wanted some glimmer of hope that we’re exiting a soft patch…and this is not it,” Jim Iuorio, director of TJM Institutional Services told CNBC. “There’s too much to bear for the stock market to go higher.”
Meanwhile, the number of planned layoffs increasedfor the second month in a row, according a report from job outplacement firm Challenger, Gray & Christmas. This comes ahead of a number of key employment news starting with ADP's jobs survey and weekly jobless claims on Thursday and the government's monthly report on Friday.
The Chinese central bank approved an increase of 0.25 percentage points, the nation's latest move to cool growth.
The euro slid for a second session against the dollar.