MARKET SNAPSHOT

U.S. stocks ended slightly higher, extending record highs. Treasury yields and the U.S. dollar slipped. Oil fell for a third straight session. Gold futures set another high.

MARKET WRAPS

EQUITIES

U.S. stocks finished slightly higher after the government shut down.

The Dow Jones Industrial Average gained 0.1%, the S&P 500 rose 0.3%, and the Nasdaq Composite increased 0.4%.

The open was lower, reflecting shutdown concerns. Stocks perked up modestly later, driven in part by sharp gains across the pharmaceutical sector following Tuesday's announcements. The Dow industrials and S&P 500 ended the day at closing highs.

Wednesday morning's ADP employment report showed private employers shed about 32,000 positions last month, undershooting consensus forecasts that they would add roughly 45,000 jobs.

Key economic data that the Federal Reserve would typically consider for policy is likely to be disrupted. That includes the September jobs report from the Bureau of Labor Statistics, which was scheduled for release Friday. A prolonged shutdown could also delay the release of the consumer-price index due in mid-October, though generally speaking investors are not expecting a ton of fireworks.

"Shutdowns tend to raise noise more than change trend," said Larry Adam, chief investment officer at Raymond James.

Markets in mainland China and Hong Kong were closed Wednesday for a holiday.

Japan's Nikkei Stock Average fell 0.8%.

Australia's S&P/ASX 200 ended flat.

In New Zealand, the S&P/NZX 50 Index rose 1.1%.

COMMODITIES

Crude oil futures finished down 1% to $61.78 a barrel.

It's the lowest crude futures have been since late May, and makes it roughly 14% they have fallen year-to-date.

Oil has declined for three straight sessions, though some analysts are speculating if selling is almost over.

"We still feel that the bulk of this week's selling has been seen," said Ritterbusch and Associates in a note.

Also affecting movement was the petroleum status report from the EIA -- which showed a build in gasoline inventories of over 4 million barrels.

Brent crude fell 1% to $65.35 a barrel.

Investors flocked into precious metal futures in the wake of the U.S. government shutdown and the ADP jobs report showing a decline in jobs instead of the expected uptick.

Both factors have added to expectations that the Federal Reserve will cut the interest rate in meetings in October and December, said ADM Investor Services in a note.

Front-month gold futures closed trading up 0.7% to $3,867.50 a troy ounce, a new record high.

Front-month silver futures closed up 2.2% to $47.29 a troy ounce, which is the highest silver has settled at since April 29, 2011.

TODAY'S TOP HEADLINES

Government Shutdown Begins as Funding Lapses

WASHINGTON-Government funding lapsed early Wednesday morning after the White House and lawmakers failed to reach a spending deal, triggering a shutdown that is expected to halt some federal services and put hundreds of thousands of federal workers on furlough.

The shutdown could be more consequential than those that have happened in the past. Trump administration officials have said they plan to use the shutdown to reduce the size of the government, moving to cut jobs across agencies. That effort is already being challenged in court.

The funding lapse will have far-reaching ramifications. For the duration of the shutdown, the Labor Department is expected to pause the release of economic data-likely including a highly anticipated jobs report that was set to be made public on Friday. The Centers for Disease Control and Prevention will stop analyzing surveillance data for reportable diseases. Many planned workspace-safety inspections will be canceled. And workers won't trim grass and install headstones at national cemeteries.

U.S. Lost 32,000 Jobs in September, Says Payroll Processor

The U.S. shed 32,000 private-sector jobs in September, payroll-processing giant ADP said on Wednesday.

That is down from a revised loss of 3,000 in August. Economists polled by The Wall Street Journal had expected an increase of 45,000.

ADP's report doesn't include government workers, but economists are giving it a closer look this month. That is because the Bureau of Labor Statistics' monthly jobs report, which was scheduled to come out this Friday, will be delayed if the government is still shut down.

U.S. Factory Activity Contracts at Slower Pace

U.S. factory activity contracted again, albeit at a slower pace as production moderately improved, according to a survey of manufacturing firms.

The Institute for Supply Management said Wednesday that its purchasing managers' index of manufacturing activity edged up to 49.1 in September from 48.7 in August. Economists polled by The Wall Street Journal expected an index of 49.0.

With the reading still below 50, it points to contraction in activity in the sector for a seventh month in a row, though a score above 42.3 on the index generally tallies with expansion in the wider U.S. economy.

Supreme Court Allows Lisa Cook to Keep Her Job for Now

WASHINGTON-The Supreme Court on Wednesday allowed Federal Reserve Governor Lisa Cook to keep her job for now and scheduled arguments in January to weigh President Trump's bid to fire her.

The court in a brief order deferred a decision on the Trump administration's emergency request to remove Cook from the central bank's independent board while a lawsuit challenging her dismissal proceeds.

The justices on several occasions have allowed Trump to fire officials at other government agencies, but they also have signaled they believe the Fed is unique and enjoys more protections from presidential intervention. By placing the case on its argument calendar, the court bought itself more time to consider the issue and dealt at least a mild setback to the president.

Microsoft CEO Relinquishes Some Duties, Names New Commercial Chief

Microsoft Chief Executive Satya Nadella is handing off some responsibilities, citing a need to focus on the company's biggest artificial-intelligence bets.

Nadella said in a note to employees on Wednesday that Judson Althoff has been promoted to helm the company's commercial business, essentially overseeing a large swath of the technology giant's operations.

Althoff will also lead the company's new commercial leadership team and oversee marketing, with Chief Marketing Officer Takeshi Numoto and his team reporting directly to Althoff.

Automakers Brace for EV Sales Plunge After Tax Credit Expires

Automakers are scrambling to unload lingering electric vehicles on dealer lots around the country, now that a $7,500 tax credit that juiced EV sales for years has expired.

The EV credit, which expired Tuesday, has lifted battery-powered car sales for years. Without it, Ford Chief Executive Jim Farley predicted, EV market share will fall by more than half to between 4% and 5% of total sales by the end of the year.

"We expect a pretty deep fall off," Farley said on the sidelines of a company event in Detroit.