US open: Stocks mixed as Treasury yields remain elevated, PMIs show strong September growth

(Sharecast News) - Major indices were mixed early on Monday as elevated Treasury yields kept investor sentiment subdued, with traders looking ahead to minutes from the Federal Reserve's latest meeting for signals on the path of interest rates.

As of 1515 BST, the Dow Jones Industrial Average was down 0.26% at 51,043.45, while the S&P 500 advanced 0.29% to 7,745.04 and the Nasdaq Composite came out of the gate 0.55% firmer at 27,339.12.

The Dow opened 133.51 points lower on Monday, taking a bite out of gains recorded in the previous session after a sharp slowdown in the labour market eased concerns about a near-term interest rate hike, while oil prices fell after the G7 said it would release fuel reserves.

However, the 10year Treasury has climbed to its highest level in more than two decades, stoking concern that higher borrowing costs could continue to weigh on equities even if the Fed opts to keep policy steady. The yield on the benchmark 10-year Treasury note was up two basis points at 5.303% early on Monday, while the 30-year note was almost five basis points higher at 5.662%.

This week's primary focus will likely be minutes from the Federal Reserve Open Markets Committee's latest two-day meeting, due out on Wednesday, with investors set to thumb over the release for any hint as to what the central bank may be thinking with regards to the near-term future of monetary policy.

On Monday's macro slate, US service sector activity accelerated sharply in September, with the S&P Global services PMI jumping to 58.8 and the composite PMI rising to 58.4, both marking the strongest expansions in more than five years. The services index posted a fourth consecutive monthly gain as business activity surged on the back of the fastest rise in new orders in fourandahalf years, while firms also stepped up hiring at the quickest pace since June 2022. The composite PMI showed similarly robust momentum across both manufacturing and services, with output rising in line with a rapid increase in new business.

Elsewhere, the Institute for Supply Management said US services activity continued to expand in September, with the Services PMI easing slightly to 54.9 from 55.4 but still marking a 27th straight month in growth territory. The ISM said business activity remained solid despite a softer reading, while new orders stayed strong at 59.8, only marginally below August's level. Hiring picked up after a recent soft patch, with the employment index rising to 50.1 and moving back into expansion for the first time in three months. The ISM's Steve Miller said the sector continued to show resilience, with demand holding firm even as activity and new orders moderated slightly from August's highs.

No major corporate earnings were slated for release on Monday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $112.02 2.14%

Microsoft Corp. (MSFT) $528.09 1.74%

Apple Inc. (AAPL) $334.36 0.84%

Visa Inc. (V) $362.35 0.54%

Unitedhealth Group Inc. (UNH) $369.34 0.23%

Dow Chemical Co. (DOW) $27.92 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

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

Procter & Gamble Co. (PG) $144.78 -0.09%

Dow Jones - Fallers

Intel Corp. (INTC) $116.57 -6.04%

Caterpillar Inc. (CAT) $829.33 -2.46%

Nike Inc. (NKE) $33.13 -2.17%

Merck & Co. Inc. (MRK) $141.33 -1.98%

Chevron Corp. (CVX) $202.84 -1.95%

Goldman Sachs Group Inc. (GS) $886.88 -1.60%

Amgen Inc. (AMGN) $400.80 -1.26%

Salesforce.Com Inc. (CRM) $231.73 -1.09%

Verizon Communications Inc. (VZ) $45.58 -0.91%

Home Depot Inc. (HD) $280.09 -0.67%

S&P 500 - Risers

Seagate Technology Plc (STX) $898.24 11.04%

Bath & Body Works, Inc. (BBWI) $17.08 6.32%

Western Digital Corp. (WDC) $442.06 6.20%

Autodesk Inc. (ADSK) $222.59 4.87%

Harley-Davidson Inc. (HOG) $25.57 4.28%

TripAdvisor Inc. (TRIP) $8.57 3.35%

Dxc Technology Company (DXC) $11.59 3.06%

Nucor Corp. (NUE) $246.88 2.70%

Intuit Inc. (INTU) $287.85 2.62%

Illumina Inc. (ILMN) $277.97 2.56%

S&P 500 - Fallers

Nektar Therapeutics (NKTR) $42.73 -8.63%

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

CH Robinson Worldwide Inc (CHRW) $142.32 -8.14%

Intel Corp. (INTC) $116.57 -6.04%

Chipotle Mexican Grill Inc. (CMG) $30.62 -4.79%

Lennar Corp. Class A (LEN) $76.58 -4.28%

Align Technology Inc. (ALGN) $139.48 -3.72%

Equity Residential (EQR) $63.66 -3.50%

Carmax Inc. (KMX) $53.08 -3.42%

T. Rowe Price Group Inc. (TROW) $103.19 -3.41%

Nasdaq 100 - Risers

Seagate Technology Plc (STX) $898.24 11.04%

Mercadolibre Inc. (MELI) $1,828.25 8.53%

Western Digital Corp. (WDC) $442.06 6.20%

Autodesk Inc. (ADSK) $222.59 4.87%

Intuit Inc. (INTU) $287.85 2.78%

Tesla Inc (TSLA) $376.61 2.77%

Illumina Inc. (ILMN) $277.97 2.56%

Broadcom Inc. (AVGO) $357.59 2.54%

Synopsys Inc. (SNPS) $506.49 2.39%

Cisco Systems Inc. (CSCO) $112.02 2.12%

Nasdaq 100 - Fallers

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

Intel Corp. (INTC) $116.57 -6.04%

Charter Communications Inc. (CHTR) $105.57 -4.86%

Align Technology Inc. (ALGN) $139.48 -3.93%

Micron Technology Inc. (MU) $1,059.52 -3.25%

Ross Stores Inc. (ROST) $226.73 -2.92%

Cognizant Technology Solutions Corp. (CTSH) $58.39 -2.62%

Booking Holdings Inc. (BKNG) $154.65 -2.61%

Adobe Systems Inc. (ADBE) $237.11 -2.42%

O'Reilly Automotive Inc. (ORLY) $83.19 -2.33%