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US open: Stocks muted following Nasdaq's fresh record close

By Iain Gilbert

Date: Wednesday 23 Jun 2021

US open: Stocks muted following Nasdaq's fresh record close

(Sharecast News) - Wall Street stocks traded slightly higher early on Wednesday after the Nasdaq Composite saw out the previous session at yet another fresh record high.
As of 1535 BST, the Dow Jones Industrial Average was up 0.05% at 33,961.81, while the S&P 500 was 0.17% firmer at 4,253.54 and the Nasdaq Composite came out the gate 0.37% stronger at 14,306.28.

The Dow opened 16.23 points higher on Wednesday, extending gains recorded in the previous session.

While markets searched for direction at the open on Wednesday, testimony from Federal Reserve Chairman Jerome Powell before the House of Representatives on Tuesday was still on investors' minds, with his reiterated that inflation pressures would only be temporary listing sentiment somewhat.

Also in focus, bitcoin was up 4% in early trading and over $34,000 after having fallen more than 11% in the previous session to dip below $30,000 and erase all of its gains for 2021.

On the macro front, mortgage applications increased 2.1% on an adjusted basis in the week ended 18 June 18, according to data from the Mortgage Bankers Association's weekly mortgage applications survey. On an unadjusted basis, the index increased 1% week-on-week, while the refinance index increased 3% but was 9% lower than the same week a year ago.

Elsewhere, America's shortfall on foreign trade and income flows with non-residents widened by less than anticipated at the start of the year. According to the Department of Commerce, in seasonally adjusted terms, the US current account deficit jumped by 11.8% quarter-on-quarter to reach $195.7bn. Economists had pencilled-in a deficit of $207.1bn.

Still to come, a flash reading of IHS Markit's June manufacturing PMI same the index rise to 62.6 from 62.1 in May, better than the market expectation of 61.4 and a new series high.

Lastly, sales of new US homes fell for a second consecutive in May, down a larger-than-expected 5.9%, according to the Commerce Department, pushing sales to a seasonally adjusted annual rate of 769,000. The median price of a new home sold in May rose to $374,400, up 18.1% year-on-year.

Turning to the central bank, Federal Reserve governor Michelle Bowman said inflation driven by the US economy's quick reopening could take "some time" to ease, stating pressure on prices "may ease as the bottlenecks are worked out".

Federal Reserve Bank of Atlanta president Raphael Bostic will deliver a speech later in the day.

In the corporate space, Winnebago posted record results that came in ahead of expectations, with towable revenue nearly tripling, while KB Home will update the market on its recent trading after the close.

Energy stocks were in the green amid rising oil prices, while tech stocks traded higher on the back of bitcoin's recovery.

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