1. U.S. data in focus
Market players looked ahead to the release of key U.S. data later in the session, amid ongoing expectations for a September rate hike.
The U.S. was to release the ADP jobs report for July at 8:15AM ET, followed by a June reading for the U.S. trade deficit at 8:30AM. At 10:00AM, the ISM was to report on service sector activity for July.
Traders were also waiting for Friday's U.S. nonfarm payrolls report. The consensus forecast is that the report will show jobs growth of 223,000 last month. Monthly jobs gains above 200,000 are seen by economists as consistent with strong employment growth.
2. Wall Street earnings keep rolling in
Lumber Liquidators (NYSE:LL), DISH Network (NASDAQ:DISH), Time Warner (NYSE:TWX), Priceline (NASDAQ:PCLN), Motorola Solutions(NYSE:MSI), Ralph Lauren (NYSE:RL), Sodastream (NASDAQ:SODA), Wendy's (NASDAQ:WEN), Dominion Resources (NYSE:D), Kate Spade & Co (NYSE:KATE), Discovery Communications (NASDAQ:DISCA), Liberty Media (NASDAQ:LMCA) and Virtu Financial (NASDAQ:VIRT) are due to report quarterly earnings ahead of Wednesday's opening bell.
After Wednesday's close of trading, Tesla Motors (NASDAQ:TSLA), Fitbit (NYSE:FIT), Keurig Green Mountain (NASDAQ:GMCR), CBS (NYSE:CBS), 21st Century Fox (NASDAQ:FOX), Weight Watchers (NYSE:WTW) and Transocean (NYSE:RIG) are scheduled to report.
3. Apple (NASDAQ:AAPL) down 1.6% in pre-market trade
Apple (NASDAQ:AAPL) was down 1.6% to $112.80 on heavy volume in pre-market trade, falling further below its 200-day moving average of $120.86. Apple is now down about 14% from its post-earnings high on July 20, entering correction territory.
Besides a weak technical picture, market analysts cited concerns over Apple\'s ability to sustain market leadership as well as worries over weaker growth in China.
4. Chinese stock market volatility continues
The Shanghai Composite took investors on a roller coaster ride on Wednesday, dropping more than 1% after the open, only to rebound into positive territory ahead of the midday break, and then drop again in afternoon trade to end down 1.7%.
The index lost almost 15% in July despite the introduction of government-measures aimed at supporting the market.
Data on Wednesday showing that activity in China's services sector grew at its fastest pace in 11 months in July failed to ease concerns over the health of the nation's economy. The Caixin/Markit services purchasing managers' index rose to 53.8 last month from June's reading of 51.8, hitting the highest level since August 2014.
5. Commodities remain in focus
West Texas Intermediate oil futures edged higher for the second consecutive day on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.
Crude oil for delivery in September on the New York Mercantile Exchange tacked on 45 cents, or 0.97%, to trade at $46.19 a barrel.
Meanwhile, gold and copper prices slipped towards six-year lows on Wednesday amid speculation the Federal Reserve will raise interest rates for the first time in nine years as soon as September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 98.25 early on Wednesday, the highest level since April 23.
The greenback was boosted after Federal Reserve Bank of Atlanta President Dennis Lockhart said Tuesday it would take a “significant deterioration in the economic picture” for him to not support a rate hike in September.