Investing.com - U.S. stocks traded flat to lower on Wednesday as investors balanced positive data out of the U.S. service sector with lackluster data out of the labor market, with many in standby mode ahead of the release of Friday's January jobs report.
At the close of U.S. trading, the Dow Jones Industrial Average fell 0.03%, the S&P 500 index slid 0.20%, while the Nasdaq Composite index fell 0.50%.
Stocks applauded the Institute for Supply Management's report that its services purchasing managers’ index came in at 54.0 in January, up from 53.0 in December.
Analysts had expected the index to rise to 53.7.
The employment component of the index rose to its highest level since November 2010.
The data eased concerns over a possible slowdown in U.S. recovery after Monday’s ISM manufacturing index showed that activity slumped to a seven-month low in January, which was partially the product of rough winter weather.
On the flip side, payroll processor ADP reported that private-sector non-farm payrolls rose by 175,000 in December, below expectations for an increase of 180,000, which dampened spirits though the numbers didn't spark a sell-off.
Losses were limited as investors concluded that a string of blizzards and bitter cold snaps may have prompted businesses to put off hiring early this year.
Friday’s official U.S. jobs report is expected to show that jobs growth rebounded in January after unseasonably cold weather in December kept gains down to 74,000.
Leading Dow Jones Industrial Average performers included Walt Disney, up 0.99%, Cisco, up 0.85%, and IBM, up 0.79%.
The Dow Jones Industrial Average's worst performers included Pfizer, down 2.53%, Microsoft, down 1.42%, and Intel, down 1.24.%.
European indices, meanwhile, finished largely higher.
After the close of European trade, the EURO STOXX 50 rose 0.08%, France's CAC 40 rose 0.01%, while Germany's DAX 30 fell 0.13%. Meanwhile, in the U.K. the FTSE 100 finished rose 0.13%.
On Thursday, the U.S. is to publish data on its trade balance as well as its weekly report on initial jobless claims.