US open: Stocks set for choppy session as oil price slumps

US stocks declined early on Wednesday as oil prices lost momentum after a strong rally earlier in the week, while a private sector jobs report disappointed.

Just before 10:00 in New York, the Dow Jones Industrial Average was down 8.60 points while the S&P 500 and the Nasdaq fell 0.36% and 0.49% respectively,

US employers added 213,000 jobs in January, missing forecasts of 220,000. December's gain was revised up to 253,000 from 241,000, which Capital Economics said was "extraordinary for the ADP because its revisions usually magically bring its estimates into line with the official non-farm payroll tally".

The Labor Department's non-farm payrolls report is due on Friday and is forecast to show a 230,000 increase in January after a 252,000 gain a month earlier.

Economists are looking for a moderation in the pace of employment growth following strong hiring in recent quarters and the January ADP report was broadly supportive of this view.

Having settled at its highest level since 31 December on Tuesday, oil prices tumbled on Wednesday, with West Texas Intermediate losing over 4% and Brent crude relinquishing almost 3%.

Meanwhile, US mortgage applications increased 1.3% in the week to 30 January after a 3.2% fall in December, the Mortgage Bankers Association said.

Among corporates on the rise, Whirlpool was spun 4% higher after posting better-than-expected sales, while General Motors gained 3% after pledging to lift its dividend 20% to 36 cents a share.

Walt Disney advanced 6% after earnings beat forecasts.

Going the other way, Chipotle Mexican Grill declined 7% after reporting late on Tuesday that sales missed estimates.

Staples plunged 8% after announcing it would buy Office Depot for $6.3bn, while Gilead Sciences dropped over 9% after reporting that it expects price discounts for its hepatitis C drugs to double in 2015.

Gold futures rose 0.47% to $1,266.20, while the dollar fell 0.5% against the pound and over 0.1% against the yen but rose 0.2% against the pound.