US open: Stocks higher as traders weigh Iran tensions, PPI data

(Sharecast News) - Major indices were in the green early on Wednesday, though gains were limited as US-Iran tensions remained elevated.

As of 1450, the Dow Jones Industrial Average was up 0.19% at 52,605.48, while the S&P 500 advanced 0.26% to 7,563.58, and the Nasdaq Composite came out of the gate 0.44% firmer at 26,220.61.

The Dow opened 97.21 points higher on Wednesday, building on modest gains recorded in the previous session as traders balanced rising US-Iran tensions against June inflation data and a fresh batch of bank earnings.

Crude prices firmed after US Central Command said American forces had carried out additional strikes on Iranian targets, stating the action was intended "to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz". West Texas Intermediate futures were up 0.71% at $79.90 a barrel in early trade, while international benchmark Brent crude futures gained 0.34% to $84.91 a barrel.

Outside of Middle East developments, Wednesday's primary focus will likely be news that the US producer price index for final demand fell 0.3% in June, according to the Bureau of Labor Statistics, reversing gains of 0.6% in May and 1.1% in April. June's decline was driven by a 1.4% drop in final demand goods - the largest fall since July 2022 - while final demand services edged 0.2% higher. On an unadjusted basis, the index was up 5.5% over the year.

Core PPI, which strips out volatile food, energy and trade services, rose 0.1% on the month and was 5.1% higher yearonyear. Last month's PPI reading comes just a day after the US consumer price index fell 0.4% in June from the prior month, taking the annual inflation rate down to 3.5%. Economists polled had expected a 0.2% monthly decline and 3.8% yearonyear inflation.

Elsewhere on the macro front, US mortgage applications fell 2.7% in the week to 10 July, according to the Mortgage Bankers Association, extending the prior week's decline. Last week's drop came as the benchmark 30year fixed mortgage rate rose seven basis points to 6.65%, matching its highest level in 11 months. The MBA said the increase reflected sharply higher longterm Treasury yields amid heightened concerns over energydriven inflation. Applications to refinance a mortgage, which are more sensitive to shortterm interest rate moves, fell 4%, while applications to purchase a home dropped a steeper 7% week-on-week.

On another note, the New York Fed's Empire State manufacturing index jumped ten points to 15.6 in July, pointing to a solid pickup in business activity across the state. Firms reported strong gains in new orders and shipments, with unfilled orders rising and delivery times lengthening further as supply availability continued to worsen. Employment increased at a steady pace and the average workweek edged higher. Input and selling prices remained elevated, though both eased slightly on the month.

In the corporate space, Morgan Stanley posted betterthanexpected secondquarter earnings on Wednesday, delivering earnings per share of $3.46 versus the $2.94 forecast, on revenue of $21.35bn compared with expectations of $19.64bn, while Bank of New York Mellon lifted its FY26 revenue outlook after reporting record Q2 revenues, boosted by higher interest income, stronger fee generation and rising equity markets that boosted client asset values.

BlackRock beat expectations, driven by record inflows and solid organic growth across its platform, with earnings per share of $13.91 topping the $12.57 consensus and revenue of $7.08bn ahead of forecasts of $6.72bn, while Johnson & Johnson also exceeded Wall Street estimates for Q2 sales and profits, helped by robust demand for immunology drug Tremfya and cancer treatment Darzalex, offsetting declines in older products.

Still to come, United Airlines will report its latest quarterly figures after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Merck & Co. Inc. (MRK) $123.68 3.10%

International Business Machines Corporation (CDI) (IBM) $222.62 2.87%

Salesforce.Com Inc. (CRM) $171.44 1.88%

Microsoft Corp. (MSFT) $390.32 1.36%

JP Morgan Chase & Co. (JPM) $349.70 1.28%

Apple Inc. (AAPL) $319.47 1.11%

Goldman Sachs Group Inc. (GS) $1,142.91 1.08%

3M Co. (MMM) $162.45 0.76%

American Express Co. (AXP) $358.46 0.74%

Walt Disney Co. (DIS) $96.53 0.68%

Dow Jones - Fallers

Cisco Systems Inc. (CSCO) $115.24 -2.72%

Travelers Company Inc. (TRV) $327.45 -1.90%

Unitedhealth Group Inc. (UNH) $417.74 -1.34%

Dow Chemical Co. (DOW) $30.08 -1.25%

Coca-Cola Co. (KO) $82.55 -0.86%

Visa Inc. (V) $352.12 -0.66%

Procter & Gamble Co. (PG) $145.69 -0.62%

McDonald's Corp. (MCD) $266.25 -0.54%

Johnson & Johnson (JNJ) $254.82 -0.41%

Amgen Inc. (AMGN) $354.61 -0.01%

S&P 500 - Risers

Paypal Holdings Inc (PYPL) $54.74 14.70%

Cintas Corp. (CTAS) $192.54 5.96%

Blackrock Inc. (BLK) $1,099.00 5.71%

Intuit Inc. (INTU) $281.65 4.31%

Gen Digital Inc. (GEN) $26.93 4.21%

Fortinet Inc. (FTNT) $169.06 3.59%

Nvidia Corp. (NVDA) $212.63 3.39%

Merck & Co. Inc. (MRK) $123.68 3.10%

Global Payments Inc. (GPN) $78.17 2.95%

International Business Machines Corporation (CDI) (IBM) $222.62 2.87%

S&P 500 - Fallers

Pentair plc (PNR) $62.66 -20.88%

Elevance Health Inc. (ELV) $379.16 -10.42%

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

Progressive Corp. (PGR) $206.63 -8.16%

Fastenal Co. (FAST) $45.38 -5.32%

QUALCOMM Inc. (QCOM) $179.01 -4.08%

Allstate Corp (The) (ALL) $240.13 -3.79%

Western Digital Corp. (WDC) $551.73 -3.40%

American Airlines Group (AAL) $15.75 -3.21%

Seagate Technology Plc (STX) $860.06 -3.05%

Nasdaq 100 - Risers

Paypal Holdings Inc (PYPL) $54.74 14.70%

Cintas Corp. (CTAS) $192.54 5.96%

Workday, Inc. (WDAY) $143.43 5.34%

Intuit Inc. (INTU) $281.65 4.31%

Gen Digital Inc. (GEN) $26.93 4.21%

Baidu Inc. (BIDU) $112.41 3.81%

Nvidia Corp. (NVDA) $212.63 3.39%

Mercadolibre Inc. (MELI) $1,886.79 3.08%

Adobe Systems Inc. (ADBE) $226.51 2.61%

Alphabet Inc. Class C (GOOG) $360.73 2.57%

Nasdaq 100 - Fallers

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

Fastenal Co. (FAST) $45.38 -5.32%

QUALCOMM Inc. (QCOM) $179.01 -4.08%

Vodafone Group Plc ADS (VOD) $15.04 -3.92%

Western Digital Corp. (WDC) $551.73 -3.40%

American Airlines Group (AAL) $15.75 -3.21%

Seagate Technology Plc (STX) $860.06 -3.05%

Cisco Systems Inc. (CSCO) $115.24 -2.72%

Biogen Inc (BIIB) $187.40 -2.65%

Skyworks Solutions Inc. (SWKS) $57.87 -2.61%