US open: Stocks edge higher as traders digest firmer PCE inflation

(Sharecast News) - US stocks opened slightly higher on Wednesday as traders digested a heavy slate of economic data, led by a firmer August PCE inflation print and further signs of cooling activity across housing, trade and inventories.

As of 1500 BST, the Dow Jones Industrial Average was up 0.07% at 51,387.60, while the S&P 500 came out of the gate 0.53% firmer at 7,711.49 and the Nasdaq Composite came out of the gate 0.93% higher stronger at 27,046.25.

The Dow opened 37.68 points higher on Wednesday, taking a modest bite out of losses recorded in the previous session as equities came under pressure from rising Treasury yields.

Wednesday's primary focus will likely be news that US inflation firmed in August, with the personal consumption expenditures price index rising 0.3% on the month and 3.4% yearonyear, according to the Bureau of Economic Analysis. Economists expected a 0.3% monthly uptick and a 3.7% annualised increase. Core PCE, which strips out volatile food and energy costs, increased 0.2% on the month and 3.0% over the year. Personal consumption expenditures jumped $190.8bn, a 0.9% monthly rise, driven by a $114.1bn increase in goods spending and a $76.7bn rise in services. Real PCE was up 0.6%.

Elsewhere on the macro front, US mortgage applications fell sharply in the week ended 25 September as rising borrowing costs continued to weigh on demand, according to the Mortgage Bankers Association. Applications declined 6%, marking a fourth straight weekly drop, as the average rate on 30year fixed conforming mortgages climbed to 7.30% from 7.12%. Applications to refinance a mortgage fell 13%, while applications to purchase a home slipped 4%.

On another note, US wholesale inventories were estimated to have risen 0.7% in August to $965.7bn, according to a preliminary reading from the Census Bureau, following a 1.3% increase in July. The August gain would mark a seventh straight monthly rise, supported by a 0.7% increase in durable goods inventories and a 0.5% uptick in non-durable stocks. On an annualised basis, wholesale inventories were projected to be 6.6% higher.

Still on data, the US goods trade deficit widened sharply in August, according to an advanced estimate from the Census Bureau, rising to $132.6bn from $118.9bn in July - the largest gap since March 2025 and well above expectations for a $115bn shortfall. Imports climbed 5.5% to a 17month high of $336.1bn, driven by a 16.6% surge in industrial supplies and a 4% rise in capital goods, including computers, semiconductors and telecoms equipment, while exports also picked up, rising 1.9% to $203.4bn after three months of declines, helped by stronger shipments of industrial supplies and capital goods.

Moving on, US economic growth was revised slightly lower in the second quarter, with real GDP rising at an annualised 2.2%, according to the Bureau of Economic Analysis' third estimate, down from 2.5% in the first quarter. The BEA said secondquarter growth was driven by consumer spending, investment and exports, while imports - which subtract from GDP - also increased. Statelevel performance varied widely, with real GDP ranging from 4% growth in New York to a 2.3% contraction in West Virginia.

Finally, the Chicago purchasing managers index jumped in September, according to the Institute for Supply Management, pointing to a sharp rebound in the region's manufacturing sector. The index rose to 58.8, well above expectations for a readinf of 51.2 and up strongly from 47.1 in August.

Comments from New York Fed president John Williams were also in focus at the open, with the policymaker saying late on Tuesday that "there is no need for urgency" and that the central bank has time to assess incoming data ahead of its October meeting. His remarks appeared to steady sentiment and temper expectations for further tightening. According to the CME FedWatch tool, markets were now pricing a 49% chance of a quarterpoint rate rise next month, down from 71% on Monday.

In the corporate space, Micron Technology will report its latest quarterly earnings after the close of trading.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $117.70 3.48%

Salesforce.Com Inc. (CRM) $230.59 2.61%

Microsoft Corp. (MSFT) $514.65 2.47%

Amgen Inc. (AMGN) $423.36 1.41%

Cisco Systems Inc. (CSCO) $107.60 1.22%

Walt Disney Co. (DIS) $106.31 0.66%

Chevron Corp. (CVX) $205.52 0.54%

International Business Machines Corporation (CDI) (IBM) $221.58 0.50%

Coca-Cola Co. (KO) $87.28 0.50%

Boeing Co. (BA) $187.85 0.26%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $368.45 -1.70%

Visa Inc. (V) $362.65 -1.27%

Caterpillar Inc. (CAT) $819.16 -0.82%

Merck & Co. Inc. (MRK) $147.85 -0.82%

Goldman Sachs Group Inc. (GS) $911.28 -0.57%

Travelers Company Inc. (TRV) $361.39 -0.55%

Nike Inc. (NKE) $35.74 -0.44%

American Express Co. (AXP) $304.62 -0.42%

McDonald's Corp. (MCD) $233.60 -0.29%

Johnson & Johnson (JNJ) $266.49 -0.29%

S&P 500 - Risers

NetApp Inc. (NTAP) $213.57 7.00%

Hewlett Packard Enterprise (HPE) $64.26 5.20%

Cadence Design Systems Inc. (CDNS) $329.33 3.85%

Synopsys Inc. (SNPS) $426.25 3.69%

Intel Corp. (INTC) $117.67 3.48%

Kohls Corp. (KSS) $18.90 3.44%

F5 Inc. (FFIV) $444.66 3.33%

Expedia Group Inc. (EXPE) $263.92 3.17%

Adobe Systems Inc. (ADBE) $236.97 3.05%

Gen Digital Inc. (GEN) $21.25 3.01%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Northrop Grumman Corp. (NOC) $485.10 -3.83%

Equity Residential (EQR) $63.66 -3.50%

Carmax Inc. (KMX) $56.46 -2.97%

Cencora Inc (COR) $298.38 -2.78%

Wynn Resorts Ltd. (WYNN) $78.58 -2.67%

NRG Energy Inc. (NRG) $95.00 -2.58%

Corning Inc. (GLW) $154.59 -2.19%

Cintas Corp. (CTAS) $196.59 -2.12%

Alexandria Real Estate Equities Inc. (ARE) $47.47 -2.04%

Nasdaq 100 - Risers

Cadence Design Systems Inc. (CDNS) $329.33 3.85%

Synopsys Inc. (SNPS) $426.25 3.69%

Intel Corp. (INTC) $117.67 3.48%

Expedia Group Inc. (EXPE) $263.92 3.17%

Adobe Systems Inc. (ADBE) $236.97 3.05%

Gen Digital Inc. (GEN) $21.25 3.01%

Workday, Inc. (WDAY) $191.11 2.69%

Take-Two Interactive Software Inc. (TTWO) $206.90 2.67%

Microsoft Corp. (MSFT) $514.59 2.47%

Intuit Inc. (INTU) $273.23 2.24%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Wynn Resorts Ltd. (WYNN) $78.58 -2.67%

Cintas Corp. (CTAS) $196.59 -2.12%

Tesla Inc (TSLA) $346.86 -1.76%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $545.39 -1.46%

Liberty Global plc Series A (LBTYA) $9.29 -1.38%

Liberty Global plc Series C (LBTYK) $8.97 -1.37%

American Airlines Group (AAL) $13.48 -1.31%

Analog Devices Inc. (ADI) $397.80 -1.27%

Charter Communications Inc. (CHTR) $112.00 -1.15%