Wall Street looks up beyond earnings-driven selloffs

Meanwhile, with the U.S. and Iran working on an agreement, oil prices are edging down, providing some support to investor sentiment.

On the data front, the ADP national employment report showed private employment increased by 44,000 jobs in July after a downwardly revised 95,000 gain in June. This compares with economist forecasts for an increase of 70,000 and the previously reported 98,000 rise in June.

U.S. services sector growth was strong in July with an acceleration in new orders offset by higher prices for inputs and a decline in employment. The Institute for Supply Management said its nonmanufacturing purchasing managers index inched up to 54.1 last month from 54.0 in June with a reading above 50 indicating growth in a sector that represents more than two-thirds of U.S. economic activity.

Among the S&P 500's 11 major industry sectors, materials .SPLRCM, up 2%, is the leading percentage gainer, while energy .SPNY, down 1%, is the biggest loser among the four declining sectors.