US open: Stocks open lower as energy rally loses steam
US stocks edged lower at the bell as the previous session's energy rally lost steam amid yet another deluge of corporate earnings, with figures from the likes of Facebook and Microsoft set to come after the close.
As of 1525 BST, the Dow Jones Industrial was down 0.05% to 26,642.31, while the S&P 500 lost 0.03% to 2,932.87 and the Nasdaq drifted 0.01% weaker to 8,120.13.
The Dow opened 14 points lower on Wednesday with investors' focus remaining largely set on earnings season, following better-than-expected figures from some blue-chip stocks during the previous session which helped both the Nasdaq and S&P 500 reach all-time highs.
Markets were boosted on Tuesday by a rally in the energy sector as the international benchmark Brent crude jumped to its highest level in five and a half months.
Oil prices shot up on the back of an announcement from the White House that it would be putting an end to the waivers that had allowed Iran's biggest buyers to carry on importing limited amounts of the nation's oil.
But oil prices began pulling back from their highest levels since October early on Wednesday, even as the market assessed whether or not major producers were actually likely to step in quickly with more supply in response to tougher action against Iran.
Elsewhere, America's top trade negotiators were set to travel to Beijing next Tuesday with a view to having a draft deal in place by May.
"[Next Tuesday's talks] will cover trade issues including intellectual property, forced technology transfer, non-tariff barriers, agriculture, services, purchases and enforcement," the White House said overnight in a statement.
The visit by American officials, including US Trade Representative Robert Lighthizer and the Secretary of the Treasury, Robert Mnuchin, would be followed by another to Washington from Chinese officials, including Vice Premier Liu He.
Both sides were hoping to have a draft agreement in place by May, according to a person familiar with the matter quoted by Bloomberg News.
In corporate news, shares in US telco AT&T dropped 3.33% after it came in shy of analysts' quarterly estimates on Wednesday, as lower-than-expected sales at WarnerMedia and a shortfall in revenues at its wireless business weighed on profits.
Biogen dipped 2.26% despite beating first-quarter profit estimates, with Caterpillar sliding 3.60% even as revenues came in strong, boosted by mining and construction equipment.
The world's largest jetmaker Boeing ticked up 0.71% after it reported a sharp decline in quarterly earnings on the back of slower commercial airline deliveries and suspended its guidance for 2019 on the back of the recent tragedies involving its best-selling 737 MAX.
Facebook, Microsoft, PayPal, Tesla and Visa will release their own quarterly figures after the close.
Interactive Investor's market head Richard Hunter noted that while earnings season had, so far, "been generally positive", he warned that as the rest of the season unfolds, several sectors will be in sharp focus for investors.
"Expectations may be low, but this has not translated to market performance, where general corporate news and the Fed’s relatively laissez-faire attitude have propelled all three major indices strongly higher in the year-to-date – the Dow Jones has added 7.2%, the S&P500 is up 16% and the NASDAQ index has jumped 21%.
"The preliminary Q1 GDP number which will be announced on Friday will be further proof of whether the US economy has beaten expectations, despite the headwinds it has faced in 2019. It is then in the hands of the corporates as to whether they can deliver the goods and maintain the strong showing in the US markets thus far."
There were no major data points scheduled for release on Wednesday.