US open: Stocks mixed as Treasury buyback plan pulls yields lower

(Sharecast News) - Wall Street trading got off to a mixed start on Wednesday as longdated Treasury yields retreated after the US Treasury said it would significantly expand buybacks of longerterm government debt.

As of 1515 BST, the Dow Jones Industrial Average was up 0.45% at 53,584.76, while the S&P 500 advanced 0.32% to 7,716.42 and the Nasdaq Composite came out of the gate 0.12% softer at 26,259.24.

The Dow opened 241.36 points higher on Wednesday, more than reversing losses recorded in the previous session after a global bond selloff and higher oil prices continued to weigh on sentiment.

However, yields on the 10 to 30year part of the curve fell after officials announced plans to at least double the size of repurchases, including the 20year sector. The 30year Treasury yield, which hit a 19year high above 5.33% in the prior session, dropped almost nine basis points to 5.196%, while the 10year eased six basis points to 4.647%.

Wednesday's other key focal point will likely be July's FOMC minutes , scheduled for release at 1900 BST, with traders getting set to thumb over the details after the meeting revealed three dissenting votes in favour of a rate hike, highlighting divisions within the central bank.

Elsewhere on the macro front, US mortgage applications dropped 0.4% in the week ended 14 August, according to the Mortgage Bankers Association, cutting into the two-month high increase seen in the prior week. Applications to refinance a mortgage, which are generally more sensitive to week-to-week rate changes, rose by 1.5% week-on-week, while applications to purchase a home slipped 2%. Last week's decline comes as the average contract interest rate for 30-year fixed-rate mortgages was unchanged at 6.77% - four basis points shy of the one-year high recorded in late July.

In the corporate space, Target posted another strong set of quarterly numbers on Wednesday, with tariff refunds giving earnings an additional lift and prompting the retailer to raise its fullyear guidance as its turnaround continued to take hold. For the second quarter, Target said revenues came in at $26.54bn, ahead of the $26.14bn expected, while net income jumped to $1.88bn or $4.11 per share, up from $935m or $2.05 a year earlier.

Fellow retailer Lowe's, on the other hand, struck a more cautious tone on its outlook, flagging ongoing "pressure" in DIY consumer spending. Secondquarter revenues came in at $26bn, just shy of the $26.1bn expected, while adjusted earnings per share of $4.27 - which included an $0.11 benefit from tariff refunds - topped forecasts for $4.22.

Elsewhere, Moderna shares surged more than 90%, putting the stock on track for its best day on record, after an experimental skincancer vaccine developed with Merck delivered positive latestage trial results, while Marvell Technology jumped more than 12% after striking an agreement with Google involving its tensorprocessing units and issuing Alphabet a warrant to buy up to nearly 59m Marvell shares.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Merck & Co. Inc. (MRK) $150.06 11.32%

Amgen Inc. (AMGN) $439.92 4.30%

Home Depot Inc. (HD) $347.30 3.03%

Apple Inc. (AAPL) $316.39 3.03%

Salesforce.Com Inc. (CRM) $201.73 2.68%

Dow Chemical Co. (DOW) $31.86 2.63%

Nike Inc. (NKE) $40.97 2.12%

Verizon Communications Inc. (VZ) $49.40 1.85%

Johnson & Johnson (JNJ) $275.65 1.77%

Walt Disney Co. (DIS) $106.03 1.77%

Dow Jones - Fallers

Intel Corp. (INTC) $92.16 -6.30%

Caterpillar Inc. (CAT) $815.13 -3.17%

Goldman Sachs Group Inc. (GS) $1,026.73 -1.64%

Cisco Systems Inc. (CSCO) $111.16 -1.12%

JP Morgan Chase & Co. (JPM) $360.68 -0.80%

Boeing Co. (BA) $221.96 -0.56%

Microsoft Corp. (MSFT) $483.33 -0.46%

S&P 500 - Risers

Estee Lauder Co. Inc. (EL) $99.26 17.65%

Merck & Co. Inc. (MRK) $150.23 11.32%

Coty Inc. Class A (COTY) $2.99 9.77%

Newmont Corporation (NEM) $124.61 7.24%

Alexandria Real Estate Equities Inc. (ARE) $48.95 7.18%

Jack Henry & Associates Inc. (JKHY) $164.70 6.93%

FMC Corp. (FMC) $10.73 6.57%

Gilead Sciences Inc. (GILD) $148.50 6.40%

Revvity, Inc. (RVTY) $120.86 6.28%

Apache Corp. (APA) $43.79 5.83%

S&P 500 - Fallers

Akamai Technologies Inc. (AKAM) $111.80 -8.89%

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

Seagate Technology Plc (STX) $868.21 -8.24%

Western Digital Corp. (WDC) $476.01 -6.56%

Intel Corp. (INTC) $92.36 -6.30%

Broadcom Inc. (AVGO) $361.63 -5.81%

Micron Technology Inc. (MU) $927.97 -5.61%

Brighthouse Financial, Inc. (BHF) $52.75 -5.33%

KLA-Tencor Corp. (KLAC) $189.16 -5.08%

Ipg Photonics Corp. (IPGP) $79.65 -5.02%

Nasdaq 100 - Risers

Gilead Sciences Inc. (GILD) $148.50 6.40%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $537.66 5.70%

Charter Communications Inc. (CHTR) $154.34 5.08%

Vertex Pharmaceuticals Inc. (VRTX) $542.38 4.85%

Cognizant Technology Solutions Corp. (CTSH) $59.85 4.77%

Biogen Inc (BIIB) $219.24 4.38%

Amgen Inc. (AMGN) $440.33 4.30%

Skyworks Solutions Inc. (SWKS) $69.28 4.26%

Illumina Inc. (ILMN) $199.96 4.22%

Comcast Corp. (CMCSA) $26.77 3.96%

Nasdaq 100 - Fallers

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

Seagate Technology Plc (STX) $868.21 -8.24%

Western Digital Corp. (WDC) $476.01 -6.56%

Intel Corp. (INTC) $92.36 -6.30%

Broadcom Inc. (AVGO) $361.63 -5.81%

Micron Technology Inc. (MU) $927.97 -5.61%

KLA-Tencor Corp. (KLAC) $189.16 -5.08%

Baidu Inc. (BIDU) $91.17 -4.99%

Wynn Resorts Ltd. (WYNN) $99.15 -2.91%

Cadence Design Systems Inc. (CDNS) $315.27 -2.47%