US open: Stocks higher as bond yields ease, oil retreats

(Sharecast News) - Major indices were in the green early on Wednesday as bond yields eased despite increasing concerns that elevated crude prices could complicate the inflation outlook.

As of 1530 BST, the Dow Jones Industrial Average was up 0.75% at 53,162.91, while the S&P 500 advanced 0.52% to 7,671.14 and the Nasdaq Composite came out of the gate came out of the gate 0.39% firmer at 26,202.07.

The Dow opened 396.03 points higher on Wednesday, almost reversing losses recorded in the previous session as a global bond sell-off and surging oil prices weighed on equities amid escalating hostilities in the Middle East.

The yield on the benchmark US 10year Treasury fell roughly half a basis point to 4.793% early on Wednesday, after briefly touching 4.814% in pre-market action, its highest level since November 2023 as government borrowing costs also moved up across the UK, Germany and France. Japan's 10year yield remained near multi-decade highs.

In terms of commodities, crude futures dipped lower in early trade, with West Texas Intermediate for October delivery slipping 1.02% to $89.30 a barrel, while Brent for November shed 0.56% to $94.12 a barrel, taking a break from the recent upswing in oil markets.

On the macro front, US mortgage applications edged up 0.8% in the final week of August, partially reversing the 1% decline seen a week earlier, according to the Mortgage Bankers Association. The slight improvement came as benchmark mortgage rates were broadly steady, with the 30year fixed rate nudging just one basis point higher to 4.79%, despite ongoing pressure on longdated Treasury yields. Applications to refinance a mortgage, which are typically more sensitive to shortterm interest rate moves, slipped 1.1% week-on-week, while applications to purchase a home rose 2.2%.

Elsewhere, US private sector employers added 38,000 jobs in August, according to Automatic Data Processing, the weakest monthly increase since January. August's figure follows a revised 46,000 rise in July, but came in below expectations for a reading around 47,000, pointing to a broader cooling in labourmarket conditions. Hiring remained firm in education and health care, which added 45,000 roles, while leisure and hospitality increased headcount by 16,000, construction by 12,000 and financial activities by 6,000. However, several industries also cut jobs, including manufacturing, which shed 17,000 positions, professional services, which lost 16,000. Large companies added 34,000 jobs and small businesses increased staffing by 3,000. ADP said pay growth was unchanged during the month.

On another note, US factory orders rose 0.9% in July, according to the Census Bureau, rebounding from a revised 0.2% decline in June and coming in ahead of forecasts for a 0.6% increase. The gain was driven by a 2.3% rise in transportation equipment, helped by a 12.7% jump in civilian aircraft and parts. Orders also increased for defence aircraft and parts, ships and boats, and motor vehicles, with rises of 4.9%, 5.3% and 0.4%, respectively. Orders fell in technologyrelated segments, with computers and electronic products down 1.1%, and electrical equipment, appliances and components slipping 0.3%. Excluding transportation, factory orders increased 0.6%, while orders excluding defence rose 1.0%.

Still to come, the Federal Reserve's Beige Book will be released at 1900 BST.

In the corporate space, Broadcom, Snowflake and Hewlett Packard Enterprise will all report earnings after the close of trading.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $89.13 3.07%

Boeing Co. (BA) $210.04 2.11%

Apple Inc. (AAPL) $324.09 1.89%

Walt Disney Co. (DIS) $108.32 1.84%

Johnson & Johnson (JNJ) $275.14 1.72%

American Express Co. (AXP) $330.64 1.72%

Amgen Inc. (AMGN) $438.73 1.26%

Visa Inc. (V) $377.76 1.25%

Dow Chemical Co. (DOW) $30.84 1.25%

JP Morgan Chase & Co. (JPM) $359.58 1.05%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $498.08 -0.83%

Cisco Systems Inc. (CSCO) $109.14 -0.45%

International Business Machines Corporation (CDI) (IBM) $230.02 -0.22%

Coca-Cola Co. (KO) $87.88 -0.22%

McDonald's Corp. (MCD) $261.15 -0.10%

3M Co. (MMM) $170.22 -0.09%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Chevron Corp. (CVX) $211.24 0.07%

S&P 500 - Risers

Kohls Corp. (KSS) $19.29 8.02%

Meta Platforms Inc. (META) $597.78 6.23%

Skyworks Solutions Inc. (SWKS) $69.17 5.52%

CenturyLink Inc. (LUMN) $6.72 5.09%

FMC Corp. (FMC) $12.48 4.83%

Freeport-McMoRan Inc (FCX) $75.05 4.13%

Best Buy Co. Inc. (BBY) $86.06 4.10%

Nucor Corp. (NUE) $261.41 4.06%

Bread Financial Holdings, Inc. (BFH) $106.26 4.00%

Coty Inc. Class A (COTY) $2.96 3.70%

S&P 500 - Fallers

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

Edison International (EIX) $54.25 -7.58%

Fortinet Inc. (FTNT) $154.53 -6.95%

Cadence Design Systems Inc. (CDNS) $309.39 -6.14%

Autodesk Inc. (ADSK) $242.70 -4.73%

Equity Residential (EQR) $63.66 -3.50%

CSX Corp. (CSX) $48.36 -3.47%

Paychex Inc. (PAYX) $123.91 -3.08%

Monster Beverage Corp (MNST) $44.49 -3.07%

Adobe Systems Inc. (ADBE) $282.30 -2.98%

Nasdaq 100 - Risers

Meta Platforms Inc. (META) $597.78 6.23%

Skyworks Solutions Inc. (SWKS) $69.17 5.52%

Sirius XM Holdings Inc (SIRI) $29.37 4.05%

Incyte Corp. (INCY) $127.76 3.51%

Intel Corp. (INTC) $89.13 3.07%

Nvidia Corp. (NVDA) $222.49 3.06%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $557.00 2.94%

QUALCOMM Inc. (QCOM) $168.02 2.60%

Regeneron Pharmaceuticals Inc. (REGN) $833.45 2.58%

Wynn Resorts Ltd. (WYNN) $92.53 2.58%

Nasdaq 100 - Fallers

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

Cadence Design Systems Inc. (CDNS) $309.39 -6.14%

Autodesk Inc. (ADSK) $242.70 -4.73%

CSX Corp. (CSX) $48.36 -3.47%

Check Point Software Technologies Ltd. (CHKP) $133.85 -3.17%

Paychex Inc. (PAYX) $123.91 -3.08%

Monster Beverage Corp (MNST) $44.49 -3.07%

Adobe Systems Inc. (ADBE) $282.30 -2.98%

Verisk Analytics Inc. (VRSK) $189.52 -2.79%

Synopsys Inc. (SNPS) $414.79 -2.28%