Wednesday delivered one of those market sessions where the headline numbers didn't quite capture what was happening underneath. U.S. stocks traded mixed at midday, with the Nasdaq Composite climbing more than 150 points while the Dow hung back. The Dow slipped 0.17% to 49,380.41, the NASDAQ gained 0.71% to 23,714.14, and the S&P 500 rose 0.27% to 6,963.78.

Services Sector Shows Strength

The big economic story of the day came from the services sector, which continues to show surprising resilience. The ISM services PMI jumped to 54.4 in December from 52.6 the previous month, marking a third straight monthly increase and sailing past market estimates of 52.3. That's a solid beat and suggests the services side of the economy is holding up better than many expected heading into year-end.

Sector Performance Splits

Healthcare stocks led the way Wednesday, gaining 1.1% as the sector attracted investor attention. On the flip side, materials stocks took it on the chin, dipping 1.5% as commodity prices broadly declined.

The Big Movers

Some individual stocks put on quite a show. Innovative Eyewear Inc (LUCY) shot up 47% to $1.74 after reporting preliminary fourth-quarter sales of about $1 million, representing a 45% year-over-year increase.

The biotech space delivered drama, as it often does. Ventyx Biosciences Inc (VTYX) surged 37% to $13.74 following reports that Indianapolis-based Eli Lilly & Co. (LLY) is in advanced talks to acquire the company for more than $1 billion, according to The Wall Street Journal. That's the kind of acquisition premium that gets investors excited.

Monte Rosa Therapeutics Inc (GLUE) also had a stellar day, jumping 51% to $24.10 after announcing interim data from an ongoing Phase 1 clinical study evaluating MRT-8102. Clinical trial results can move biotech stocks dramatically, and this was no exception.

On the downside, Datavault AI Inc (DVLT) dropped 14% to $1.20 despite disclosing a collaboration with Riflessi, a premier Fifth Avenue retail destination in New York City. Sometimes even positive-sounding news doesn't land the way companies hope.

Curis Inc (CRIS) fell 15% to $0.85 after announcing pricing of a private placement totaling up to $80.8 million in gross proceeds. Dilution concerns often weigh on stock prices when companies announce new fundraising.

Bright Minds Biosciences Inc (DRUG) declined 12% to $82.30 as the company announced the launch of a $100 million public offering. More dilution worries hitting biotech names.

Commodities Take a Hit

The commodity complex had a rough day across the board. Oil traded down 2% to $56.01, while gold declined 0.6% to $4,469.30. Silver got hit particularly hard, falling 5.1% to $76.89, and copper dropped 3.1% to $5.8740. That's a meaningful move in the metals space.

Global Markets Mixed

European shares were mostly lower on the session. The eurozone's STOXX 600 slipped 0.18%, while Spain's IBEX 35 Index fell 0.43%. London's FTSE 100 declined 0.71%, Germany's DAX gained 0.68%, and France's CAC 40 fell 0.25%.

Asian markets closed mostly lower Wednesday, with Japan's Nikkei 225 falling 1.06%, Hong Kong's Hang Seng Index declining 0.94%, China's Shanghai Composite gaining 0.05%, and India's BSE Sensex falling 0.12%.

Economic Data Roundup

Beyond the ISM services data, several other economic reports crossed the wires. The volume of mortgage applications in the U.S. rose by 0.3% from the previous week during the week ending January 2, suggesting modest stability in housing demand.

U.S. job openings declined by 303,000 to 7.146 million in November, falling to the lowest level since December 2020 and coming in well below market estimates of 7.60 million. That's a notable softening in labor demand that could influence Federal Reserve policy thinking.

U.S. crude inventories declined by 3.831 million barrels to 419.1 million barrels in the week ended January 2, versus market estimates of a 1.1 million barrel gain. The larger-than-expected drawdown suggests stronger demand or supply constraints, though oil prices still fell on the day.