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[BRIEFING.COM] Stocks tumbled Wednesday as renewed uncertainty about Fed policy, ongoing geopolitical concerns and record high oil prices prompted investors to lock in profits.

Amid an already cautious tone tied to Iran's nuclear ambitions, several missile tests from North Korea added even more tension to global equity markets and provided the initial excuse to consolidate recent gains. Concerns that oil supplies to Asia could be disrupted as a result, coupled with a forecast for $80 oil before January 1 from famed oil trader T. Boone Pickens and concerns about a potential drawdown in weekly gas supplies for the first time in two months, helped push crude oil futures to a new all-time high of $75.40 per barrel and a close of $75.19 (+1.7%). That was oil's highest level since reaching an intraday record of $75.35 on April 24. To the dismay of the bulls, subsequent leadership from Energy -- the only sector to finish in positive territory -- was modest at best.

The absence of notable economic data to support speculation that the Fed may pause at its next FOMC meeting on August 8 left the door open for a typically overlooked report to garner some added attention. With policy makers increasingly dependent on "incoming" economic data, and Friday's closely-watched June jobs report scheduled as the next big event, ADP Employer Services saying companies added 368,000 nonfarm jobs last month -- the largest increase since ADP began keeping records in January 2001 -- suggests that Friday's nonfarm payroll figures (consensus 160,000) may also check in at a strong level.

Since ADP claims there is a 90% correlation between its data and the Labor Department's monthly employment figures, which will be closely-watched by the Fed hawks on Friday, the data stalled talks of a potential pause in Fed tightening and renewed worries of the Fed going too far with its tightening to keep inflation in check. Bonds plunged as the 10-yr note, which was off about 4 ticks to yield 5.16% before the ADP report, closed down 17 ticks to yield 5.21%.

Even though higher interest rates diminished the desire to own rate-sensitive areas like Financials and Utilities, surging bond yields took an even bigger toll on the borrowing power of growth stocks. Technology turned in the day's worst performance (-1.7%) and stalled the Nasdaq's recent momentum. As if Intel (INTC 18.75 -0.61) turning in the worst performance (-24%) among Dow components in the first half of 2006 wasn't bad enough, UBS cutting its EPS estimates on the chip giant helped push the influential SnP 500 constituent down 3.2%. The semiconductor group experienced additional weakness after Marvell Technology (MRVL 41.31 -3.53) plunged 8.0% to an eight-month low, after getting an SEC inquiry about stock options, while Advanced Micro Devices (AMD 23.90 -0.70) plummeted 2.8% after UBS cut its price target to $29 from $33.
NYSE Adv/Dec 907/2406...Nasdaq Adv/Dec 905/2150