US open: Mixed start to trading as US-Sino relations remain in focus

Wall Street trading began on a mixed note on Wednesday following further conversations between officials in Washington and Beijing.

As of 1540 GMT, the Dow Jones Industrial Average was down 0.08% at 28,100.28, while the S&P 500 was up 0.14% at 3,144.94 and the Nasdaq Composite traded 0.39% stronger at 8,681.27.

The Dow Jones opened 21.40 points lower on Wednesday after the S&P 500 and Nasdaq Composite hit record highs during the previous session.

As far as Wednesday was concerned, market participants remained largely focused on the long-running trade dispute between the US and China after Donald Trump said during the previous session that US and Chinese negotiators were close to reaching an initial trade deal.

Trump's comments on trade followed a phone call between officials from Washington and Beijing earlier on Tuesday, with both parties having reportedly agreed to keep working on remaining issues.

However, it was still not clear as to whether or not both sides would be able to reach a compromise before new US tariffs on Chinese goods were due to come into effect on 15 December.

Oanda analyst Craig Erlam said: "The sudden daily obsession with the trade war probably has a lot to do with the fact that there's very little else to talk about at the moment, which doesn't bode well for the rest of the year. Of course, that may change if a deal gets over the line but, let's face it, we've been "close" to that for much of the year.

"We're basically in limbo, it's neither clear that we're close to a deal or on the verge of collapse because the final issues are too difficult to overcome. Washington and Beijing clearly want us to believe the former but then, it was meant to be signed by now."

On the data front, the number of Americans filing for unemployment benefits fell more than expected last week, according to data from the Labor Department.

US initial jobless claims declined by 1,500 from the previous week’s revised level to 213,000, beating expectations for a small drop to 221,000. The previous week’s level was revised up by 1,000.

Elsewhere, orders for goods made to last more than three years jumped past forecasts last month, amid strong demand for aircraft and a much stronger-than-expected reading for so-called core capital goods orders.

According to the Department of Commerce, US durable goods orders increased at a month-on-month pace of 0.6% in October to reach $248.7bn (consensus: -0.8%).

Looking towards the midwest region, the Chicago Purchasing Management Index showed contraction but improved slightly in November from a multi-year low reported a month earlier.

The index came in at 46.3 in November from an unrevised 43.2 in October - the lowest level recorded since December 2015.

Lastly, contract signings for previously sold homes across the US fell more than they had since July last month but remained healthy on an annual basis.

Pending home sales decreased 1.7% in October from the prior month and rose 3.9% from a year earlier, the second-highest pace since 2016, according to the National Association of Realtors.

Still to come, the Federal Reserve's Summary of Commentary on Current Economic Conditions will be published at 1900 GMT.

In corporate news, Deere & Company shares slid in early trade after the firm reported a slide in fourth-quarter income and slashed its forecasts, hurt by poor weather in America's farming heartland and Washington's ongoing spate with Beijing.

Apple, Facebook, Netflix and Amazon lead early gains - all up at least 0.5% at the bell.