Stock market today: Stocks edge higher amid Mideast caution, Tesla slips after deliveries fall short

The major US stock averages were little changed on Wednesday but more significant action was seen in stocks tied to the Chinese economy as investors continue dissect what a wide-ranging stimulus package could mean for China.

US equities tied to Chinese e-commerce chugged higher again on Wednesday. Online retail giants Alibaba (BABA), Pinduoduo (PDD), and JD.com (JD) were all higher on the day, with both JD.com and Pinduoduo rising more than 4%. The KraneShares China Internet ETF (KWEB) rose another 6.4% on Wednesday and is now up more than 30% in the past five trading sessions.

Information Technology (XLK) was the lone standout in Wednesday's market action. The tech sector rose nearly 0.9% on the day. Energy XLE (XLE), which was up more than 0.4%, was the only other of the 11 sectors outpacing the S&P 500's gains.

Below is a look at the sector action with one hour remaining in the trading session.

Tesla's (TSLA) more than 50% rally over the past six months hit a speed bump on Wednesday as the company announced third quarter deliveries that slightly missed expectations, sending the stock down as much as 5%.

The electric vehicle maker delivered 462,890 vehicles in the three months ending Sept. 30, up 6.4% quarter over quarter to mark the first quarter of delivery growth this year. But Wall Street had expected Tesla to deliver closer to 463,897, according to Bloomberg.

Wedbush Securities managing director Dan Ives viewed the deliveries "as good and a step in the right direction." But, he added, investors will likely "walk away from delivery numbers expecting more."

This brings us back to a common theme with Tesla stock. When the conversation shifts purely to the fundamental car business, investors aren't nearly as impressed as when CEO Elon Musk is talking about every person in the world owning a Tesla robot.

CEO Elon Musk understands this. He told investors during Tesla's last earnings call in late July that "the value of Tesla overwhelmingly is autonomy."

Musk will have his chance to further that investor pitch next week during Tesla's robotaxi event on Oct. 10.

Workers are finding it increasingly less rewarding to leave their current job for a new one.

New data from ADP released Wednesday showed that the median year-over-year pay increase for job switchers fell to 6.6% in September, down from 7.3% in August and the lowest growth rate since April 2021. The gap between pay gains for job changers and those of job stayers, which grew at a 4.7% pace in August, is at its narrowest since January and a far cry from 2022-2023 levels during the "Great Resignation."

ADP chief economist Nela Richardson told Yahoo Finance on a call with reporters that the narrowing gap in pay gains for people who stay versus increases for those who leave their jobs is a sign the labor market is "less tight ... less dynamic."

"There is an equilibrium, but I don't know how long we stay in equilibrium," Richardson said.

Read more here.

Dockworkers began striking across the US East and Gulf Soasts on Tuesday.

The walkout of roughly 45,000 workers could "hit economic growth and boost inflation" but only if the strike is long-lasting, Morgan Stanley economist Diego Anzoategui wrote in a note to clients on Wednesday.

"While Rails have already paused service and shipping rates are temporarily elevated, we believe the Transportation implications should be reasonably limited unless there is a prolonged work stoppage," Anzoategui wrote.

He added that food and beverages would likely see the largest price increases from the strike.

Additionally, the strike could impact economic data readings. Goldman Sachs' economics team estimates that a 10-day strike could result in a 0.2 percentage point hit to gross domestic product in the fourth quarter. Meanwhile, workers remaining on strike through Oct. 12 would likely hurt the October jobs report.

"If the strike lasts through the reference period, it would directly weigh on October payroll growth by 45k, but the effect would subsequently reverse upon the end of the strike," Goldman Sachs economists Elsie Peng and Jessica Rindels wrote in a note to clients Tuesday night.

Given the Federal Reserve's focus on the slowing labor market, there is debate among economists about whether or not a weak October jobs report caused by the strike would prompt the Fed to cut interest rates by 50 basis points.

Morgan Stanley's economics team argued that "the Fed tends to look through short-run fluctuations caused by strikes." But Renaissance Macro's head of economics, Neil Dutta, argued a sharp hit to the October jobs report from both the strike and a recent hurricane in the Southeast would be hard to overlook given other signs of slowing in the labor market.

"Yes, these issues might be temporary and will show up more in the Establishment Survey than the Household one, but I don’t think the Fed should ignore them given the balance of risks," Dutta wrote. "Why take chances with inflation resolved?"

Good news for Apple (AAPL): A JPMorgan (JPM) survey released Wednesday showed that more consumers are looking to buy iPhones than they were this time last year — but not because of its recently released AI features.

The report found that 68% of the roughly 500 consumers surveyed want to purchase a new iPhone — above the 63% reported in the prior two years. Some 55% of the consumers looking to purchase a new iPhone are non-iPhone users, versus 41% in 2023 and 43% in 2022.

AI features weren't a top reason for their desire to purchase a new phone. Instead, they said they wanted a faster device with 5G connectivity.

"[W]e believe that the staggered launch and limited availability of features for consumers to try, is driving this trend," JPMorgan analyst Samik Chatterjee wrote in a research note.

Apple iPhone sales have struggled this year, with the tech giant recording its steepest year-over-year decline since the pandemic during the second quarter. Sales surpassed analyst expectations in the third quarter but still remained lower than in 2023.

Wall Street has been disappointed so far with demand for the iPhone 16, the first phone with Apple Intelligence features (albeit limited ones).

Oil prices extended gains on Wednesday after Israel promised a retaliation against Iran's strike amid escalating tensions in the Middle East.

West Texas Intermediate (CL=F) rose as much as 3% to hover near $72 per barrel. Brent (BZ=F), the international benchmark price, gained more than 2% to trade just below $75.

The gains on Wednesday follow Tuesday's sharp moves after Iran fired about 200 ballistic missiles at Israel in response to Israeli ground raids in southern Lebanon.

Tel Aviv has vowed to retaliate against Tehran. Iran's oil facilities could be targeted, according to an Axios report.

Read the full story here.

Nike stock (NKE) sank about 7% on Wednesday after the company reported fiscal first quarter revenue that missed estimates and withdrew its outlook for the year amid a CEO transition.

The shoe giant reported first quarter earnings per share of $0.70, higher than Wall Street's estimate of $0.52 and down 26% from the year-earlier period. Meanwhile, Nike's revenue of $11.59 billion fell short of analyst estimates of $11.65 billion and marked a 10% decline from the year-ago quarter.

Nike's sales slumped in both its direct-to-consumer business and its wholesale division. Nike Direct revenues were $4.7 billion, a 13% fall from the same quarter a year ago. Wholesale revenues were $6.4 billion, down 8% on the year-earlier period.

"A comeback at this scale takes time, and while there are some early wins, we have yet to turn the corner," Nike CFO Matthew Friend said on the company's earnings call Tuesday night.

Read the full story here.

Tesla (TSLA) stock slid more than 5% on Wednesday morning as the company announced third quarter deliveries that fell short of Wall Street's expectations.

The electric vehicle maker delivered 462,890 vehicles in the three months leading up to Sept. 30, up 6.4% from the preceding quarter. This fell short of Wall Street's expectations of 463,897 vehicles delivered.

Read the full story here.

US stocks slipped further on Wednesday as escalating Israel-Iran tensions fanned worries about a wider Middle East conflict, prompting caution in the market.

The S&P 500 (^GSPC) fell about 0.3%, while the Dow Jones Industrial Average (^DJI) slid about 0.2%, as investors braced for Israel's promised retaliation for a massive missile attack by Iran. The Nasdaq Composite (^IXIC) was also about 0.2% lower.

The tensions have prompted a spike in oil prices. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures were both up around 3% on Wednesday, with traders paying a premium amid the prospect of risks to supply from heightened Israel-Iran attacks.

New data from ADP released on Wednesday showed the private sector added more jobs than expected in September. ADP chief economist Nela Richardson described it as a "pretty healthy and widespread rebound" in hiring.

ADP's National Employment Report showed 143,000 jobs were added in the month, above economists' estimates for 125,000 and significantly higher than the 99,000 seen in August.