(MENAFN- ProactiveInvestors) U.S. stocks were struggling to hold onto gains Wednesday as oil prices tumbled after crude stockpiles in the US rose by much more than expected.
As of noon in New York the Dow Jones Industrial Average was up 65 points at 17731 while the Nasdaq rose 5 points to 4733 and the S&P 500 edged down slightly to 2050.
The Dow gained another 305 points on Tuesday erasing the bulk of January's losses in just the past two sessions as oil prices rebounded.
Oil prices fell today however ending a four-day rally that pushed up prices by about 19% as weak data from China and a rise in US stockpiles reignited global demand concerns. The HSBC China services PMI reported a six-month low of 51.8 in January compared with 53.4 in December. The Information Administration also said this morning that crude stockpiles rose 6.3 million barrels for the week that ended Jan. 30. Analysts polled by Platts forecast a climb of 2.8 million barrels.
WTI crude for March delivery was last down $2.73 at $50.30 a barrel in New York.
In the U.S. ADP reported that private sector employment grew by 213000 in January well below forecasts for 240000. ADP also revised December's gain to 253000 from a prior estimate of 241000. The report comes ahead of Friday's January employment figures.
Later in the morning the Institute for Supply Management issued its January non-manufacturing index which came in at 56.7 slightly above forecasts for 56.5. This compared to 56.5 in December.
In corporate activity GM () profit topped estimates in its latest quarter while the company also announced it will raise its dividend. Shares gained almost 5%.
Merck (RK) reported sales declined in the fourth quarter citing a strong dollar and patent expirations with shares down over 3.5% today.
Ralph Lauren () also slid more than 15% after posting weak third quarter results.
Walt Disney () late Tuesday blew past expectations for both earnings and revenue with shares rising over 8% Wednesday.
Chipotle () shares dropped sharply after its same restaurant sales and revenue failed to meet estimates with the chain saying it is considering increasing prices.
Macy's () raised its profit forecast and also announced the acquisition of beauty products and services provider Bluemercury for $210 million.
() trimmed its expected fiscal year loss after cutting costs and seeing better-than-expected sales of its PlayStation consoles. Shares gained 11%.
Toyota () increased its annual profit forecast benefiting from a drop in the yen's value.
In other news () confirmed it is buying (NASDAQ:ODP) for $6.3 billion in cash and stock. rose 1.8% while declined over 10%.
J.M Smucker () has agreed to buy Big Heart Pet Brands for $3.2 billion.
Yahoo () is planning to spin off its small business unit which helps small businesses set up and run their enterprises online as part of the spinoff of its $40 billion stake in Alibaba (NYSE:BABA).
In world markets China's Shanghai Composite declined almost 1% as the country's central bank cut the amount of deposits it requires banks to hold as reserves to 19.5% looking to encourage lending and boost economic growth. European markets finished mixed Wednesday. Gold futures were up $4 at $1264 an ounce after China cut its reserve ratio.
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