Stocks Open Lower After ADP Jobs Shock, Tesla Gains on Deliveries Beat

U.S. stock indexes opened mostly lower Wednesday as a surprise contraction in private-sector hiring reignited concerns about the labor market’s trajectory, while Tesla shares jumped after strong quarterly delivery figures.

The Dow Jones Industrial Average slipped 39.34 points, or 0.09%, to 44,455.60. The S&P 500 dropped 3.77 points, or 0.06%, to 6,194.24, while the Nasdaq Composite was off 1.53 points, or 0.01%, at 20,201.40, as of 9:31 a.m. ET.

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Markets digested a major downside surprise in the June ADP National Employment Report, which showed U.S. private-sector employment fell by 33,000 jobs last month, the first decline since the pandemic-era lows and a stark miss versus consensus expectations for a 111,000 gain.

The weakness was concentrated in services, with professional and business services shedding 56,000 jobs and education and health services down 52,000. Financial activities lost 14,000 jobs, while leisure and hospitality added 32,000. Goods-producing industries bucked the trend, adding 32,000 jobs, driven by manufacturing and construction.

“While layoffs remain rare, the ADP data point to a growing hesitancy to hire,” said Dr. Nela Richardson, chief economist at ADP, highlighting that companies appear to be trimming headcount via attrition rather than mass layoffs.

Tesla (TSLA) was a bright spot at the open, surging 3.89% to $312.40 after the EV maker reported better-than-expected Q2 deliveries earlier Wednesday. The company’s stock jumped more than $11 at the open, reflecting optimism around demand and execution in a volatile macro environment.

Elsewhere, commodity markets offered mixed signals. August gold futures edged up 0.19% to $3,356.00 as of 9:08 a.m. ET, while crude oil rose 1.02% to $66.12, buoyed by industrial strength despite the broader employment concerns. Trading volumes in gold and oil contracts were moderately active, with 73.76k and 57.79k contracts changing hands, respectively.

In a notable development with political and corporate implications, Paramount Global has agreed to pay President Donald Trump $16 million to settle a lawsuit over edits to a “60 Minutes” interview. The settlement, brokered by a mediator, is earmarked for Trump’s future presidential library and is intended to facilitate Paramount’s long-delayed sale to Skydance Media.

The agreement, however, has drawn criticism from First Amendment experts and sparked concerns among Senate Democrats, some of whom warned that the payment could be viewed as an attempt to influence the FCC’s review of the Skydance takeover. The deal still faces a final regulatory hurdle, with FCC Chairman Brendan Carr probing whether the CBS edits constituted news distortion.

As investors digest the labor data and corporate headlines, attention turns to Thursday's official jobs report from the Labor Department. While inflation remains the Fed’s primary concern, signs of labor market softening could begin to shift the policy narrative in coming months.