US open: Stocks higher ahead of Fed minutes

(Sharecast News) - Major indices were in the green early on Wednesday as market participants awaited minutes from the Federal Reserve's most recent policy meeting after the close.

As of 1515 GMT, the Dow Jones Industrial Average was up 0.30% at 49,682.11, while the S&P 500 advanced 0.72% to 6,892.21 and the Nasdaq Composite came out of the gate 0.41% firmer at 22,669.93.

The Dow opened 148.92 points higher on Wednesday, extending modest gains recorded in the previous session as traders returned to their desks after the Presidents' Day holiday in a cautious mood following recent falls.

Stocks traded higher at the open as investors looked ahead to minutes from the Federal Reserve's January meeting at 1900 GMT, though the week's primary focus will likely be Friday's personal consumption expenditure price index, with the PCE reading, the central bank's preferred measure of inflation, expected to offer a clearer view of underlying economic momentum.

Elsewhere on the macro front, US mortgage applications rose 2.8% in the week ended 14 February, according to the Mortgage Bankers Association, partially reversing the roughly 20% cumulative decline seen over the previous three weeks. The modest pickup came as benchmark mortgage rates slipped by four basis points, edging back toward the 16month lows reached in late January. Applications to refinance a mortgage, which are typically more sensitive to shortterm rate movements, jumped 7% on the week. However, applications for mortgages to purchase a home fell 3%, with the MBA noting that limited new supply continued to keep many prospective buyers on the sidelines.

On another note, building permits and housing starts both strengthened in December, according to fresh figures from the Census Bureau, pointing to a firmer end to the year for residential construction despite ongoing regional divergences. Building permits rose 4.3% monthonmonth to an annualised rate of 1.44m, ahead of expectations for 1.40m, driven by an 18.1% jump in permits for buildings with five units or more, which climbed to 515,000. Singlefamily permits slipped 1.7% to 881,000.

Housing starts also advanced, rising 6.2% on the month to 1.40m, up from 1.32m in November and comfortably ahead of forecasts of 1.33m to mark a second consecutive monthly gain and the strongest pace since July, extending the rebound from October's 15month low. For the year as a whole, an estimated 1.36m housing units were started in 2025, down 0.6% from 2024.

Moving on, US durable goods orders fell in December, according to delayed data from the Census Bureau, easing back after a strong gain the previous month. New orders for manufactured durable goods declined 1.4% monthonmonth, following an upwardly revised 5.4% jump in November, but smaller than the 2% fall expected by economists. December's decline was largely driven by a 5.3% decline in transportation equipment, including a sharp 25.9% slump in nondefence aircraft and parts.

Finally, capacity utilisation edged higher at the start of the year, according to Federal Reserve data, rising to 76.2% in January from a downwardly revised 75.7% in December. However, the reading still came in slightly below consensus forecasts of 76.5%. Industrial production increased 2.3% year-on-year in January.

In the corporate space, Booking Holdings, Ebay, and Molson Coors will all report their latest quarterly figures after the close.

Reporting by Iain Gilbert at Sharecast.com