U.S. stocks trade lower as oil shaves gains

U.S. stocks erased early gains to trade mildly lower around midday Wednesday, as oil volatility dominated market sentiment.

By noon, the Dow Jones Industrial Average fell 94.71 points, or 0.57 percent, to 16,421.51. The S&P 500 lost 11.88 points, or 0.61 percent, to 1,926.80. The Nasdaq Composite Index dipped 48.38 points, or 1.03 percent, to 4,637.54.

Oil prices traded mixed around midday Wednesday after rising more than 3 percent in early trading, as data showed that U.S. gasoline and diesel stockpiles surged for a second consecutive week.

On Tuesday, oil prices continued to drop as oversupply worries persisted. The U.S. oil traded below 30 U.S. dollars a barrel for the first time since December 2003.

Oil prices have tumbled about 17 percent since the start of the year, dragged lower by a global supply glut and a strong U.S. dollar.

Meanwhile, investors were keeping an eye on the Federal Reserve's Beige Book scheduled to release in the afternoon, which was expected to show more indications on economic conditions of the United States.

Overseas, China's exports in yuan-denominated terms climbed 2.3 percent year on year in December, compared with November's 3.7-percent drop, while imports declined 4 percent, an improvement from the previous month's 5.6-percent fall, the General Administration of Customs (GAC) reported Wednesday.

Economists had forecast an eight-percent fall for exports in December and an 11-percent decline for imports.

On Tuesday, U.S. stocks ended higher after volatile trading, as Wall Street tried to recover from a sharply lower start to the year amid falling oil prices. Endit