US open: Dow Jones heads south, S&P slips off record high
By Iain Gilbert
Date: Wednesday 04 Aug 2021
(Sharecast News) - Major indices mostly traded lower early on Wednesday as traders thumbed over earnings from General Motors and some key jobs data from ADP.
As of 1520 BST, the Dow Jones Industrial Average was down 0.41% at 34,970.74, while the S&P 500 was 0.23% weaker at 4,412.80 and the Nasdaq Composite came out the gate 0.02% higher at 14,764.90.
The Dow opened 145.66 points lower on Wednesday, while the S&P 500 fell from the fresh record close recorded in the previous session.
Market participants were digesting comments from Treasury Secretary Janet Yellen, who said that enacting Joe Biden's trillion-dollar bipartisan infrastructure bill was key to maintaining America's status as the "world's pre-eminent economic power".
The yield on the benchmark 10-year Treasury note was drawing an amount of attention as well, trading flat near 1.17% early on Wednesday after having dipped below 1.13% earlier in the session.
Earnings were also in focus on Wednesday, with General Motors raising its full-year guidance despite missing earnings expectations for the second quarter.
Still to come, MGM Resorts, Wynn Resorts and Booking.com will report following the close.
On the macro front, mortgage applications fell 1.7% across the US in the week ended 30 July, after jumping 5.7% in the previous week. According to the Mortgage Bankers Association, applications to refinance a home loan decreased 1.7% and purchases also went down 1.7% despite the average fixed 30-year mortgage rate dropping below 3% for the first time since February.
Elsewhere, private sector employment in the US grew less than expected in July amid a shortage of workers, according to the latest figures from the ADP. Employment rose by 330,000 from June, versus expectations for a 695,000 increase. Meanwhile, the June total of jobs added was revised to 680,000 from 692,000. Small businesses with fewer than 50 employees added 90,000 jobs, while medium businesses with between 50 and 499 employees added 132,000. Large businesses with more than 500 employees created a further 106,000 jobs.
Lastly, the ISM's non-manufacturing PMI came to a reading of 64.1 in July, the highest reading in the series' history, up from last month's print of 60.1 and ahead of expectations of 60.5.
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