US open: Mixed start to trading ahead of Fed symposium

Wall Street stocks were somewhat mixed at the bell on Wednesday as investors looked ahead to this week's Federal Reserve symposium in Jackson Hole.

As of 1530 BST, the Dow Jones Industrial Average was down 0.09% at 28,223.06, while the S&P 500 was 0.22% points higher at 3,451.10 and the Nasdaq Composite came out the gate 0.55% stronger at 11,529.99.

The Dow opened 25.38 points lower on Wednesday, extending losses recorded in the previous session as signs of potential progress in trade talks between the US and China were offset by some weaker-than-expected consumer confidence data.

Market participants were mostly looking ahead to a speech from Federal Reserve chairman Jerome Powell tomorrow at the central bank's annual meeting on monetary policy in Wyoming.

Investors will look out for hints on further stimulus programmes and the direction of the US economy, with a particular focus on hints on whether further monetary stimulus was on the horizon or if the Fed would soften its stance on inflation in favour of an approach that would look for an average 2% rate across the year.

SpreadEx's Connor Campbell said: "Whether or not Powell at least hints towards this – the proximity of September’s meeting may rule out a full reveal – could make or break what has so far been an incredibly strong August for the index."

Despite the slow start to trading, sentiment was given a slight boost by news that orders for goods made to last more than three years had smashed economists' forecasts last month, led by a sharp jump in those for motor vehicles and parts.

According to the Department of Commerce, in seasonally adjusted terms durable goods orders surged at a month-on-month pace of 11.2% to reach $230.7bn - well ahead of 4.8% increase expected by analysts.

Also in focus, US Trade Representative Robert Lighthizer said on Tuesday that Washington and Beijing had made "progress" in trade talks and both sides were "committed to taking the steps necessary to ensure the success" of their phase one trade deal.

In other macro news, mortgage applications slipped 6.5% in the week ended 21 August, the biggest decline recorded since mid-June, according to the Mortgage Bankers Association. Applications to refinance a home loan fell 10.2%, while homebuyer mortgage applications increased 0.4%.

In corporate news, software giant Salesforce smashed earnings expectations after the close on Tuesday and will now replace Exxon Mobil in the Dow Jones, while American Airlines said it would cut 19,000 jobs in October when a US government coronavirus wage support scheme extended to the industry ends.

Box and Williams-Sonoma will report earnings throughout the course of the day.