US open: Shares drop amid mixed economic data, rise in Treasury yields

Shares on Wall Street were trading on their backfoot amid generally positive readings on the economy and a further move higher in Treasury yields.

As of 1448 BST, the Dow Jones Industrials was trading 0.56% or 124.02 points lower to 21,352.20, alongside a 16.55 point decline in the S&P 500 to 2,416,79 while the Nasdaq Composite was 1.0% lower to 6,088.24.

In the background, the yield on the benchmark 10-year US Treasury was up by five basis points to 2.37% as investors around the world continued react to the apparent policy signals from central banks that tighter monetary policy lay ahead.

Yet at least in the case of US Treasury prices some strategists believed a bottom might be near.

Earlier on Thursday, HSBC strategist Lawrence Dyer told clients he saw US 10-year yields holding in 2.1% to 2.4% range over the near-term.

By sectors, the best performing areas of the market were: Biotechnology (1.23%), Broadline retailers (1.23%) and Aluminium (1.21%).

Thursday's key economic release undershot forecasts, but economists were dismissive.

Private sector payrolls in the US rose by 158,000 last month (consensus: 185,000), according to consultancy ADP, following a downwardly-revised increase of 230,000 for May.

However, Ian Shepherdson, chief economist at Pantheon Macroeconomics wrote: "Don't be deceived [...] May's official number was hit be a seasonal adjustment problem, which likely won't reverse in full in June but definitely will not be repeated. Payrolls should therefore revert to the trend implied by a host of survey data, at least."

In parallel, the ISM institute's service sector gauge for June jumped from level of 56.9 for May to 57.4 for June (consensus: 56.6).

Menwhile, the US foreign trade deficit declined from -$47.6bn in April to -$46.5bn for May, according to the Department of Commerce.

Front month West Texas Intermediate crude oil futures were higher by 1.76% to $45.94 a barrel on the NYMEX ahead of official inventory data which was set to be published later in the session.

HSN stock rocketed on the heels of a $2.6bn buyout offer from Liberty Interactive.

Shares in consumer-facing wholesaler Costco gained before the opening bell after it reported a 7% jump in its sales for June to $12.17bn. For the five weeks to 2 June its like-for-like sales were 6% ahead.

Analysts at RBC resumed coverage of Exxon Mobil shares at 'sector perform' and of Chevron's at 'underperform'.

Dow Jones - Risers

Wal-Mart Stores Inc. (WMT) $75.36 0.05%
Nike Inc. (NKE) $57.53 -0.04%
Travelers Company Inc. (TRV) $126.18 -0.15%
Procter & Gamble Co. (PG) $87.54 -0.15%
Caterpillar Inc. (CAT) $107.27 -0.20%
McDonald's Corp. (MCD) $152.70 -0.24%
United Technologies Corp. (UTX) $122.49 -0.24%
3M Co. (MMM) $209.24 -0.25%
Chevron Corp. (CVX) $104.31 -0.30%
Boeing Co. (BA) $201.20 -0.30%

Dow Jones - Fallers

Verizon Communications Inc. (VZ) $43.94 -1.59%
Walt Disney Co. (DIS) $104.03 -1.51%
General Electric Co. (GE) $26.94 -1.48%
Intel Corp. (INTC) $33.96 -1.12%
Cisco Systems Inc. (CSCO) $30.76 -1.11%
Microsoft Corp. (MSFT) $68.35 -1.06%
Merck & Co. Inc. (MRK) $63.51 -1.01%
Unitedhealth Group Inc. (UNH) $186.43 -0.97%
Apple Inc. (AAPL) $142.79 -0.90%
Goldman Sachs Group Inc. (GS) $226.06 -0.87%

S&P 500 - Risers

Diamond Offshore Drilling Inc. (DO) $11.25 2.93%
ONEOK Inc. (OKE) $51.90 2.26%
Dover Corp. (DOV) $82.99 1.68%
PACCAR Inc. (PCAR) $67.31 1.39%
Alcoa Corporation (AA) $34.23 1.36%
Williams Companies Inc. (WMB) $30.62 0.89%
Carmax Inc. (KMX) $63.90 0.83%
Marathon Oil Corp. (MRO) $11.83 0.77%
Costco Wholesale Corp. (COST) $159.21 0.75%
Time Warner Inc. (TWX) $102.33 0.75%

S&P 500 - Fallers

L Brands Inc (LB) $48.11 -11.09%
Patterson Companies Inc. (PDCO) $44.43 -6.33%
Seagate Technology Plc (STX) $37.13 -4.86%
Urban Outfitters Inc. (URBN) $18.30 -4.34%
Under Armour Inc. Class A (UAA) $21.37 -3.48%
Akamai Technologies Inc. (AKAM) $49.39 -3.06%
Signet Jewelers Ltd (SIG) $62.41 -2.62%
Tenet Healthcare Corp. (THC) $18.63 -2.51%
Hanesbrands Inc. (HBI) $22.66 -2.24%
Tractor Supply Company (TSCO) $51.83 -2.21%

Nasdaq 100 - Risers

NetEase Inc. Ads (NTES) $298.36 1.43%
PACCAR Inc. (PCAR) $67.31 1.39%
Costco Wholesale Corp. (COST) $159.21 0.75%
Liberty Global Plc Lilac Class C (LILAK) $21.73 0.56%
O'Reilly Automotive Inc. (ORLY) $179.63 0.48%
Liberty Global Plc Lilac Class A (LILA) $22.20 0.45%
Monster Beverage Corp (MNST) $49.61 0.20%
Dish Network Corp. (DISH) $62.85 0.13%
Mondelez International Inc. (MDLZ) $43.16 0.09%
American Airlines Group (AAL) $51.30 0.08%

Nasdaq 100 - Fallers

Seagate Technology Plc (STX) $37.13 -4.86%
Tesla Inc (TSLA) $315.70 -3.48%
Akamai Technologies Inc. (AKAM) $49.39 -3.06%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $54.04 -2.47%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $272.43 -2.37%
Tractor Supply Company (TSCO) $51.83 -2.21%
Vertex Pharmaceuticals Inc. (VRTX) $126.33 -2.07%
Liberty Interactive Corporation QVC Group (QVCA) $23.97 -2.00%
Paypal Holdings Inc (PYPL) $53.52 -2.00%
Idexx Laboratories Inc. (IDXX) $158.26 -1.93%