US open: Dow Jones on track to snap three-day winning streak

Wall Street stocks opened mixed on Wednesday, putting the Dow Jones Industrials on track to snap a three-day winning streak.

As of 1540 BST, the Dow Jones Industrial Average was down 0.29% at 26,214.32 and the S&P 500 was 0.20% weaker at 3,118.44, while the Nasdaq Composite was up 0.20% at 9,915.85.

The Dow Jones opened 75.66 points lower on Wednesday, reversing some of yesterday's gains after stronger-than-expected retail figures and news of more monetary and fiscal policy support from the Federal Reserve and the White House boosted sentiment.

Market participants were continuing to watch the situation in the US with some concern on Wednesday, especially after the National Institute of Allergy and Infectious Diseases' Anthony Fauci warned of a need to move quickly in order to avoid a second surge in cases in various states.

While testimony from Fed chair Jerome Powell provided some support during the previous session, he also stated that he remained cautious on the outlook for the US economy. Investors were also seemingly optimistic that the White House will be able to pull together a $1trn infrastructure package.

Also in focus was a fresh outbreak of Covid-19 in the Chinese capital of Beijing, with 137 new cases reported in recent days, and record increases in new cases in Arizona, Florida, Oklahoma, Oregon and Texas.

In data news, homebuilders in the US broke ground on fewer new homes than expected last month, but some economists were sanguine. According to the Department of Commerce, in seasonally adjusted terms, housing starts increased in May by 4.3% month-on-month, to reach an annualised pace of 974,000 (consensus: 1.1m).

Fed chairman Jerome Powell will again deliver testimony at 1700 BST and Cleveland Fed president Loretta Mester will speak at 2100 BST.

Also in the headlines, the latest Reuters/Ipsos poll showed that Democratic presidential hopeful Joe Biden had opened up a 13 point lead against Donald Trump, for the widest gap year-to-date.

On the corporate front, stocks in companies most likely to benefit from the reopening of the US economy such as United, Delta, American Airlines, Carnival, Norwegian Cruise Line and Royal Caribbean were all down at the open.