US open: Mixed start to trading following Fed minutes, jobless data

Wall Street stocks were mixed at the bell on Thursday as minutes from the Fed's latest meeting and an increase in initial unemployment claims weighed on sentiment.

As of 1520 BST, the Dow Jones Industrial Average was 0.15% lower at 27,651.61 and the S&P 500 was 0.08% weaker at 3,327.18, while the Nasdaq Composite came out the gate 0.26% firmer at 11,175.21.

The Dow opened 41.27 points lower on Thursday, carrying on losses started at the end of the previous session as minutes from the Federal Reserve's July meeting had investors spooked at the end of the previous session after the central bank cut its economic growth forecast for the remainder of 2020 and stressed the need for more financial aid to vulnerable families and the broader economy due to the Covid-19 pandemic.

Also in focus was this week's unemployment claims data from the Department of Labor, which revealed that the number of people filing for jobless claims for the first time increased by 135,000 to 1.106m over the week ended 15 August. On the other hand, secondary unemployment claims continued retreating, by 636,000 to 14.84m over the week ending on 8 August.

However, while the Federal Reserve's minutes weighed heavily on sentiment, losses were somewhat pared after China's commerce ministry revealed that Washington and Beijing would head back to the negotiating table over the coming days.

Oanda's Craig Erlam said: "With the S&P 500 and Nasdaq both back in record territory, we may also be seeing a little profit-taking as the minutes themselves weren't exactly that much of a blow.

"All considered, even with the tweak to the language on forward guidance, I don't think there's much to be concerned about. They're not tightening any time soon, the chances are we're facing the status quo for some time. It seems the minutes were just an excuse to take a little profit off the table as a number of people question these lofty valuations, under the circumstances."

Elsewhere on the macro front, manufacturing activity in the US slowed slightly last month, the results of a closely-followed survey showed. The Federal Reserve Bank of Philadelphia's regional factory sector index slipped from a reading of 24.1 points for July to 17.2 in August (consensus: 20.0). A sub-index tracking new orders decreased from 23.0 to 19.0.

Lastly, the Conference Board's leading index for July increased at a slower pace than the previous two months at a rate of 1.4% to 104.4, indicating the initial post-pandemic recovery appeared to be losing steam.

Federal Reserve Bank of San Francisco head Mary Daly will deliver comments at 1800 BST.

In corporate news, Apple became the US' first company to hit a market capitalisation of $2.0trn, while Estee Lauder posted a 32% drop in quarterly sales and announced it would be cutting as many as 2,000 jobs.

Nvidia shares slipped despite posting a 50% jump in quarterly revenues, while Intel shares advanced in early trade after announcing an accelerated buyback plan.