Stocks were mixed Wednesday after the latest reading on the U.S. economy showed a steady state of growth.
The S&P 500 added 0.05%, the Dow Jones Industrial Average rose 0.2%, and the Nasdaq declined 0.1%.
Activity in the 12 Federal Reserve districts grew at a "modest pace," according to the latest "Beige Book." The anecdotal reading on economic conditions throughout the country reported "modest to moderate" wage pressures. Manufacturing activity also "generally improved" after a rough start to the year. The release covered information collected over the six weeks from mid-May to the end of June.
Crude oil pulled back from its highest levels in roughly a week on Wednesday after a weekly read on crude inventories showed a smaller-than-expected decline. The Energy Information Administration reported a 2.5-million-barrel decline in stocks, weaker than an expected drop of 3.25 million barrels.
The International Energy Agency warned in its monthly report that ballooning inventories could threaten the "recent stability of prices." Output in the Middle East has risen, while production in the U.S. has shrunk, creating a short-term balance in supply.
West Texas Intermediate crude oil closed 4.4% lower at $44.75 a barrel on Wednesday.
The energy sector was the biggest drag on Wall Street Wednesday. Major oilers including Exxon Mobil(XOM) - Get Report , Chevron(CVX) - Get Report , Halliburton(HAL) - Get Report and ConocoPhillips(COP) - Get Report were all lower, while the Energy Select Sector SPDR ETF (XLE) - Get Report slid 1%.
Wall Street extended a rally into day three on Tuesday, pushing the S&P 500 and Dow to clinch new record closing highs. The S&P 500 secured a record close of 2,152.14, its second day of record closes. The Dow climbed to 18,347.67, breaking a previous all-time record from May last year
It's been three weeks since the United Kingdom voted to exit the European Union and Wall Street has erased all Brexit-related losses. British Prime Minister David Cameron will step down from his role on Wednesday, leaving the post to incoming PM Theresa May.
Import prices climbed just 0.2% in June, below an expected 0.5% increase and well below May's 1.4% growth. Import prices excluding fuel dropped 0.3%, according to the Bureau of Labor Statistics. Export prices rose 0.8%, in line with estimates.
The outcome of the Brexit vote has increased uncertainty over the U.S. economic outlook, Cleveland Fed President Loretta Mester said on Tuesday. Mester also noted the Fed has the ability to pause before determining the next interest-rate move.
"I do not think U.S. monetary policy is behind the curve yet" so it was right for the Fed to hold rates steady in June, Mester said in a speech on the economic outlook at the Australian Business Economists Luncheon in Sydney. "I expect we will be living with uncertainty for a while as the U.K. and Europe establish the terms of their new relationship."
The chances of a rate hike this year have been greatly diminished by recent rough patches in economic data and the uncertainty surrounding the United Kingdom's exit from the European Union. However, a stronger-than-expected U.S. jobs report in June reintroduced the possibility of a rate hike later in 2016.
Tesla(TSLA) - Get Report fell more than 1% after confirming that it had discontinued its guarantee of a resale value for its Model S vehicles. The automaker said it had retired the program to "keep interest rates as low as possible." The program guaranteed certain Model S buyers a minimum resale price after three years.
Michaels(MIK) - Get Report tumbled after announcing a secondary offering of 11 million shares, 1 million of which it plans to repurchase. The arts and crafts retailer also said it expects second-quarter earnings no higher than 18 cents a share, weaker than consensus.
Juno Therapeutics (JUNO) roared higher on Wednesday after the Food and Drug Administration removed a clinical hold on its Phase 2 trial of a drug for leukemia. The biotech company had slumped last week after the FDA put a hold on the trial after the death of two patients undergoing the treatment.
Amazon's(AMZN) - Get Report second annual Prime Day didn't go as smoothly as hoped for with technical glitches restricting sales early in the day on Tuesday. Even so, the e-retailer said it expects a record with roughly a 30% increase in sales at small businesses and sellers on the site.
Time Inc. (TIME) was on watch after announcing plans to undergo significant reorganization to refocus on digital media. The changes affect its ad ales, editorial and brand development departments.