US open: Dow Jones on track to wrap up solid H1 on a positive note

Wall Street trading got off to a mixed start early on Wednesday as major indices looked set to close out a winning first half and second quarter on a mostly positive note.

As of 1525 BST, the Dow Jones Industrial Average was up 0.38% at 34,421.77, while the S&P 500 was 0.05% firmer at 4,294.14 and the Nasdaq Composite came out the gate 0.20% weaker at 14,499.48.

The Dow opened 129.48 points higher on Wednesday, extending modest gains recorded in the previous session.

Wall Street stocks were set to put a solid first half behind them on the final day of trading for Q2, with the first half gains mostly being driven by a rapid reopening of the US economy as over 60% of adults have now received their Covid-19 vaccine.

On the macro front, mortgage applications fell 6.9% in the week ended 25 June, according to the Mortgage Bankers Association, the largest drop since early February, as record-high home price appreciation sidelined many buyers.

Applications to refinance existing loans dropped 8.2% and applications to purchase a home slid 4.8% week-on-week as the average contract interest rate for traditional 30-year mortgages increased to 3.20% from 3.18% the prior week.

Elsewhere, private sector employment increased by 692,000 jobs in June, according to ADP's national employment report, compared to analyst consensus estimates for a print of 600,000.

Still on data, June's Chicago PMI revealed business conditions in the Chicago region rose at a slightly slower pace in June after reaching its highest level in 47 years a month earlier. The index fell to 66.1 in June from 75.2 in the prior month, the lowest since February.

Lastly, contracts to purchase previously owned homes rose sharply last month to reach the highest level seen since May 2005, according to the National Association of Realtors. The NAR's pending home sales index, based on contracts signed last month, rose 8.0% to 114.7, while economists had actually forecast pending home sales declining 0.8% month-on-month.

In the corporate space, Bed Bath and Beyond raised its full-year revenues outlook but quarterly earnings were impacted by turnaround costs, while Constellation Brands was in the green after raising its outlook on the back of strong beer sales.

General Mills quarterly net sales slid on weak at-home food demand, while Micron Technology will issue an update after the close.