US open: Stocks soften after dovish Fed minutes, political squabbling

Wall Street appeared to be on track to break a four-day winning streak following the release of a more dovish-than-expected set of minutes of the US Federal Reserve's July policy meeting.

Several analysts were also drawing attention to the US president's decision overnight to dissolve two of his business councils, which stoked concern over his ability to bridge the political and social divide in order to pass key reforms that were still pending.

As of 1629 BST, the Dow Jones Industrials was trading 108.53 points or 0.49% lower to 21,916.66, alongside a 14.82 point or 0.69% drop for the S&P 500 to 2,453.11 while the Nasdaq Composite was retreating by 48.26 points or 0.76% to 6,297.03.

From a sector standpoint, the biggest losses were being seen in the following industrial groups: Aluminum (-2.37%), Telecommunications (-2.36%) and Iron &Steel (-1.98%).

Commenting on the situation in markets, Joshua Mahony at IG said: "Unsurprisingly we have seen financials fall back across the board, as the prospect of higher rates in 2017 continues to diminish. Fears over the weakening inflation picture has put the December rate hike on a knife edge, with the balance sheet normalisation seeming the more likely of the two.

"[Trump came] into power on a pro-business ticket where he promised to bring everyone together, we have seen zero pro-business policies implemented, and social divides widen. With fellow Republicans and now business leaders turning their back on the President, it feels as if the chances of true growth friendly reforms are looking less and less likely."

For David Madden at CMC Markets UK, it was more a matter of simple profit-taking.

Against that backdrop, one of the most widely-followed gauges for the US jobs market revealed it continued to be in robust health. Initial jobless claims plummeted by 12,000 over the week ending 12 August to reach 232,000, according to the Department of Labor.

Economists had forecast a reading of 240,000.

In parallel, the Philly Fed announced that its regional manufacturing index slipped from a reading of 19.5 for July to 18.9 for August (consensus: 19.0).

Industrial production grew by 0.2% month-on-month in July (consensus: 0.3%), alongside upwards revisions to readings for the months of March and April.

Meanwhile, the Conference Board's index of leading economic indicators clocked in with an advance of 0.3% on the month for July, as anticipated.

Later in the day, at 1800 BST, traders would be listening in on a speech from Dallas Fed president Robert Kaplan.

On the corporate front, retailing giant Wal Mart posted better-than-expected earnings per share of $1.08 on a 2.1% rise in revenues to $123.6bn.

Fashion retailer Urban Outfitters rocketed despite the company's top line having shrunk from $890.6m to $872.9m (consensus: $862.0m).

Dow Jones - Risers

McDonald's Corp. (MCD) $159.32 0.26%
Walt Disney Co. (DIS) $102.40 0.20%
International Business Machines Corp. (IBM) $142.64 0.10%
Visa Inc. (V) $103.36 0.04%
Unitedhealth Group Inc. (UNH) $193.74 -0.02%
Procter & Gamble Co. (PG) $92.42 -0.02%
Coca-Cola Co. (KO) $46.19 -0.02%
Caterpillar Inc. (CAT) $114.05 -0.06%
American Express Co. (AXP) $87.25 -0.16%
Boeing Co. (BA) $237.12 -0.20%

Dow Jones - Fallers

Cisco Systems Inc. (CSCO) $31.14 -3.71%
Wal-Mart Stores Inc. (WMT) $79.38 -1.98%
Goldman Sachs Group Inc. (GS) $222.64 -1.32%
Apple Inc. (AAPL) $159.34 -1.00%
Exxon Mobil Corp. (XOM) $76.85 -0.81%
Johnson & Johnson (JNJ) $133.16 -0.75%
Home Depot Inc. (HD) $151.17 -0.71%
3M Co. (MMM) $206.45 -0.71%
Intel Corp. (INTC) $35.56 -0.70%
United Technologies Corp. (UTX) $117.18 -0.69%

S&P 500 - Risers

Altaba Inc. (AABA) $62.97 3.83%
Mallinckrodt Plc Ordinary Shares (MNK) $36.95 2.81%
Hershey Foods Corp. (HSY) $108.66 2.47%
Endo International Plc (ENDP) $8.90 2.30%
Advance Auto Parts (AAP) $93.40 2.07%
Mylan Inc. (MYL) $31.10 2.07%
United Rentals Inc. (URI) $114.19 1.98%
Coach Inc. (COH) $41.50 1.91%
Signet Jewelers Ltd (SIG) $54.80 1.69%
Tractor Supply Company (TSCO) $54.55 1.53%

S&P 500 - Fallers

L Brands Inc (LB) $35.12 -11.20%
NetApp Inc. (NTAP) $40.05 -5.56%
CenturyLink Inc. (CTL) $19.88 -4.83%
Cisco Systems Inc. (CSCO) $31.14 -3.71%
Automatic Data Processing Inc. (ADP) $107.19 -3.52%
Eli Lilly and Company (LLY) $78.52 -2.69%
Level 3 Communications, Inc. (LVLT) $53.70 -2.68%
Nucor Corp. (NUE) $55.38 -2.38%
Frontier Communications Co. (FTR) $14.02 -2.30%
Biogen Inc (BIIB) $287.65 -2.19%

Nasdaq 100 - Risers

Mylan Inc. (MYL) $31.10 2.07%
Tractor Supply Company (TSCO) $54.55 1.53%
Shire Plc Ads (SHPG) $149.28 0.57%
Walgreens Boots Alliance, Inc. (WBA) $81.65 0.48%
Cerner Corp. (CERN) $64.26 0.47%
Dentsply International Inc. (XRAY) $53.63 0.28%
Hologic Inc. (HOLX) $38.29 0.20%
Liberty Global Plc Lilac Class C (LILAK) $26.08 0.19%
Liberty Global Plc Lilac Class A (LILA) $26.27 0.19%
Incyte Corp. (INCY) $124.45 0.09%

Nasdaq 100 - Fallers

JD.com, Inc. (JD) $41.28 -5.42%
Cisco Systems Inc. (CSCO) $31.14 -3.71%
Automatic Data Processing Inc. (ADP) $107.19 -3.52%
Biogen Inc (BIIB) $287.65 -2.19%
Fiserv Inc. (FISV) $122.44 -1.91%
Maxim Integrated Products Inc. (MXIM) $44.82 -1.90%
Biomarin Pharmaceutical Inc. (BMRN) $81.55 -1.83%
Analog Devices Inc. (ADI) $78.67 -1.74%
American Airlines Group (AAL) $47.60 -1.67%
Western Digital Corp. (WDC) $84.42 -1.67%