US open: Stocks lower as traders digest PPI report, rising energy prices

(Sharecast News) - Major indices were in the red at the opening bell on Thursday as market participants digested the first of two key inflation reports set for release before the end of the week.

As of 1515 BST, the Dow Jones Industrial Average was down 0.30% at 52,224.39, while the S&P 500 shed 0.51% to 7,597.66 and the Nasdaq Composite came out of the gate 0.74% softer at 26,058.71

The Dow opened 156.27 points lower on Thursday, extending losses recorded in the previous session on the back of the Treasury Department's announcement that it will purchase up to $6bn in longer-term debt - triple the usual amount.

Energy prices were in focus at the open, with West Texas Intermediate futures up 3.83% at $99.73 a barrel and Brent crude futures 3.79% higher at $105.05 a barrel, which, in turn, pushed the yield on the benchmark 10-year Treasury note above 4.9% - its highest level in almost three years.

Investors also turned their attention to the first of this week's two inflation readings, with the Bureau of Labor Statistics revealing US producer prices rose in August, as the PPI for final demand rose 0.4% monthonmonth and 5.4% year-on-year. Prices for final demand goods increased 1.1%, driven largely by a broad rise in energy costs, which were up 4.2%, while goods excluding food and energy rose 0.4%, and food prices edged 0.1% higher. The BLS said more than a third of the monthly increase in goods prices reflected a 24.1% jump in diesel fuel, with gasoline, jet fuel, heating oil, candy and nuts, and tobacco products also higher.

The final demand services index rose 0.1%, marking a third straight monthly gain. Transportation and warehousing services climbed 2.3%, led by a 2% rise in truck freight rates, while airline passenger services, legal services, hospital inpatient care and partial auto retailing also increased.

Elsewhere on the macro front, Americans lined up for unemployment benefits at a deccelerated pace in the week ended 5 September, according to the Labor Department, extending recent resilience in the labour market. Initial jobless claims fell by 1,000 to 206,000, broadly aligned with expectations for a print of 205,000 and in keeping with a recent run of low claim counts since hitting an almost 60-year low of 189,000 in mid July. The prior week's reading was upwardly revised by 1,000 to 207,000.

Continuing claims eased by 1,000 week-on-week to 1.77m, while the four-week moving average, which aims to strip out week-to-week volatility, came in at 206,000, a decrease of 1,500 from the prior week. The Labor Department also said the advance seasonally adjusted insured unemployment rate was 1.2% for the week ended 29 August, unchanged from the previous week's unrevised rate.

On another note, US existing home sales decreased by 2% in August, according to the National Association of Realtors, with month-on-month sales holding steady in the West and declining in the Northeast, Midwest and South. On an annualised basis, sales were unchanged in the South and declined in the Northeast, Midwest and West. The NAR highlighted that the number of months it would take to exhaust the total inventory of available homes at the current sales pace had grown to 4.9 months' - the highest level seen in over ten years.

Finally, US wholesale inventories rose by 1.3% month-on-month to $958.9bn in July, according to the Census Bureau, matching preliminary estimates and following June's upwardly revised 0.4% uptick. July's reading marked the sixth straight monthly increase and the sharpest improvement since March. On an annualised basis, wholesale inventories were up 5.7%.

In the corporate space, Macy's posted further signs of progress in its turnaround on Thursday as the department store group delivered secondquarter sales growth across all banners and lifted fullyear guidance. Comparable sales rose 2.7% in the quarter, with the core Macy's chain up 1.1%, while higherend banner Bloomingdale's delivered an 11.3% jump in comparable sales. Macy's raised its fullyear outlook and said it now expects net sales of $21.68bn to $21.83bn, up from prior guidance of $21.5bn to $21.75bn, while fullyear earnings per share guidance was also increased to $2.15 to $2.35, from $2.00 to $2.20 previously.

Still to come, Adobe and Oracle were both scheduled to report their latest quarterly figures after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dow Chemical Co. (DOW) $29.90 1.73%

Verizon Communications Inc. (VZ) $50.47 1.58%

Coca-Cola Co. (KO) $88.77 1.45%

Unitedhealth Group Inc. (UNH) $396.63 1.08%

Salesforce.Com Inc. (CRM) $246.82 1.07%

Apple Inc. (AAPL) $318.86 0.76%

Johnson & Johnson (JNJ) $268.19 0.38%

Travelers Company Inc. (TRV) $367.34 0.31%

Walt Disney Co. (DIS) $104.45 0.15%

Procter & Gamble Co. (PG) $142.46 0.05%

Dow Jones - Fallers

Intel Corp. (INTC) $100.00 -4.45%

Caterpillar Inc. (CAT) $800.69 -1.84%

3M Co. (MMM) $161.70 -1.60%

Home Depot Inc. (HD) $306.52 -1.19%

Nike Inc. (NKE) $36.84 -1.12%

Goldman Sachs Group Inc. (GS) $1,018.12 -1.06%

International Business Machines Corporation (CDI) (IBM) $237.98 -0.97%

JP Morgan Chase & Co. (JPM) $351.69 -0.87%

Merck & Co. Inc. (MRK) $146.40 -0.69%

Amgen Inc. (AMGN) $388.48 -0.52%

S&P 500 - Risers

Elevance Health Inc. (ELV) $416.02 5.39%

Centene Corp. (CNC) $67.00 5.38%

Expedia Group Inc. (EXPE) $274.67 3.19%

Philip Morris International Inc. (PM) $191.07 3.06%

Marriott International - Class A (MAR) $332.46 3.05%

F5 Inc. (FFIV) $404.02 2.66%

Humana Inc. (HUM) $409.21 2.50%

Celanese Corp. (CE) $45.47 2.43%

Verisk Analytics Inc. (VRSK) $177.89 2.31%

AT&T Inc. (T) $25.67 2.29%

S&P 500 - Fallers

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

Freeport-McMoRan Inc (FCX) $70.54 -7.66%

KLA-Tencor Corp. (KLAC) $175.14 -5.85%

Lam Research Corp. (LRCX) $300.77 -5.41%

Intel Corp. (INTC) $100.00 -4.45%

Seagate Technology Plc (STX) $862.05 -4.20%

Lennar Corp. Class A (LEN) $77.49 -4.10%

Western Digital Corp. (WDC) $461.07 -3.93%

Applied Materials Inc. (AMAT) $452.65 -3.80%

QUALCOMM Inc. (QCOM) $172.44 -3.77%

Nasdaq 100 - Risers

Expedia Group Inc. (EXPE) $274.67 3.19%

Marriott International - Class A (MAR) $332.46 3.05%

Verisk Analytics Inc. (VRSK) $177.89 2.31%

Monster Beverage Corp (MNST) $43.39 2.25%

Biogen Inc (BIIB) $214.41 2.08%

Biomarin Pharmaceutical Inc. (BMRN) $64.99 1.80%

eBay Inc. (EBAY) $104.24 1.75%

CSX Corp. (CSX) $49.29 1.56%

Mondelez International Inc. (MDLZ) $62.38 1.42%

Intuitive Surgical Inc. (ISRG) $358.10 1.24%

Nasdaq 100 - Fallers

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

KLA-Tencor Corp. (KLAC) $175.14 -5.85%

Lam Research Corp. (LRCX) $300.77 -5.41%

Intel Corp. (INTC) $100.00 -4.45%

Seagate Technology Plc (STX) $862.05 -4.20%

Western Digital Corp. (WDC) $461.07 -3.93%

Applied Materials Inc. (AMAT) $452.65 -3.80%

QUALCOMM Inc. (QCOM) $172.44 -3.77%

Nvidia Corp. (NVDA) $217.58 -3.45%

Wynn Resorts Ltd. (WYNN) $88.68 -3.38%