US open: Mixed start to session as trade talks return to focus

US stocks were mixed in early trade on Wednesday as market participants began to look ahead to face-to-face talks between American and Chinese negotiators next week.

At 1525 BST, the Dow Jones Industrial Average was down 0.30% at 27,266.52, while the S&P 500 was flat at 3,005.87 and the Nasdaq Composite traded 0.07% firmer at 8,257.07.

According to Bloomberg, US Trade Representative Robert Lighthizer and other senior officials will travel to China on Monday for the first high-level, face-to-face trade negotiations between the world's two biggest economies since the dialogue between the pair broke down back in May.

Lighthizer and a small team will remain in Shanghai until Wednesday, with the three-day meeting said to involve a broad discussion of the issues outstanding. However, the trip wasn't expected to result in a major breakthrough.

"It is impossible to judge how long it will take when the president's objective is to get a proper deal or go ahead with tariffs," said Secretary of Commerce Wilbur Ross on Tuesday.

"What is important is if we make a deal, it's a proper deal, a really good deal. That's his overriding objective. And that's much more important than exact timing."

In terms of earnings, shares in telco giant AT&T were 2.31% higher at the bell after it reported growth in its wireless business unit, while Boeing flew 1.21% lower as it reported its largest ever quarterly loss following issues with its 737 MAX.

Facebook, Tesla and Equifax will update investors later on Wednesday.

Elsewhere, the US Department of Justice said it will be opening an antitrust review into major technology firms such as Amazon, Apple, Facebook and Alphabet to control the reach of their power and complaints of unlawful detriment of competitors.

"The Department's review will consider the widespread concerns that consumers, businesses and entrepreneurs have expressed about search, social media, and some retail services online," the DoJ said in a statement.

On the data front, IHS Markit's manufacturing PMI slumped to 50 in July - its worst level in nearly a decade, while the services PMI improved to 52.2 from 51.5 in June, allowing the composite PMI to tick up to 51.6 for July.

"The survey data indicated that the economy started the third quarter on a disappointingly soft footing," said Chris Williamson, chief business economist at IHS Markit.

"The PMIs for manufacturing and services collectively point to annualized GDP growth of just 1.6%, up only very marginally from a lacklustre 1.5% indicated by the survey in the second quarter."

Elsewhere, new single-family homes sales rebounded sharply in the US in June, but sales for the three months prior were revised lower, pointing to continued difficulties across the housing market despite lower mortgage rates and a strong labour market.

New home sales rebounded 7% to a seasonally adjusted annual rate of 646,000 units last month, according to the Commerce Department, while May's sales pace was revised down to 604,000 units from 626,000. Data for March and April was also revised down.