Stocks trim gains after services economy measurement drawers
"To some extent, a trade agreement is already priced in," said Peter Cardillo, market economist at Spartan Capital Securities. But "a trade agreement is a victory for the United States and the global economy."
"It will lift a big cloud that is over the world economy," he said.
This comes after a rocky past session for Wall Street. Dow fell for the first time in four sessions on Tuesday, and retires from a solid rally at the beginning of the week.
However, the gains were truncated by weaker than expected economic data.
Private salaries increased by 129,000 in March, according to ADP and Moody's Analytics. It is well below a refinitive estimate of 1[ads1]73,000. The report from ADP and Moody's is usually seen as a preview of the US Government's monthly work report, scheduled for release on Friday morning.
A weaker than expected update on the US service sector has also occurred stock improvements throughout the session. Growth in services fell more than expected in March and advanced at the lowest pace for more than 12 months, the Department of Supply Management reported.
The ISM non-production index was dipped to 56.1 last year, the softest reading since August 2017.
A bearish call on Caterpillar shares also kept the market in check. Caterpillar shares fell 1 percent after Deutsche Bank downgraded the industry giant to keep from buying and slashing its 12-month price target. The bank has a "collapse" in synchronized global growth.
-CNBCs Ryan Browne contributed to this report.
