US open: Stocks edge up as bear capitulation continues, consumer confidence strengthens

US stocks added to the solid gains from the previous session in early trading, even as a top-rated Wall Street strategist cautioned that upside for the S&P 500 benchmark might be limited.

Helping sentiment heading into the long-weekend, the University of Michigan announced a bigger than expected rise in US consumer sentiment, alongside a big drop in their expectations for inflation.

At 1528 BST, the Dow Jones Industrial Average was ahead by 0.26% at 34,498.07, led by gains for Nike and Boeing, alongside a 0.24% gain for the S&P 500 to 4,437.21.

The tech-heavy Nasdaq Composite meanwhile was edging up 0.06% to 13,799.44.

Yields on the benchmark 10-year US Treasury note were six basis points higher to 3.787%.

Nonetheless, in a research note sent to clients, BofA Securities's Michael Hartnett, said he saw a further 100-150 points of upside for the S&P 500 until Labor Day on 4 September.

However, there was also 300 points of downside risk.

Indeed, he believed a "big rally" as bears capitulated might be followed by a "big collapse", among other things as the Fed "reintroduced fear" into the market by signalling that it would take rates up to 6%.

The University of Michigan's consumer confidence index rose from a reading of 59.2 for the month of May to 63.9 in June (consensus: 60.0) - its best reading in four months.

Inflation expectations for the year ahead meanwhile plummeted from 4.2% in May to 3.3% in June - the least since March 2021 - reversing April's spike.

Elsewhere on the macro front, Richmond Fed boss, Thomas Barkin, said he would be comfortable supporting further rate hikes if incoming data did not show slower demand returning inflation to 2% "relatively quickly".

Dow Jones - Risers

Boeing Co. (BA) $222.60 1.45%
Nike Inc. (NKE) $114.00 1.42%
McDonald's Corp. (MCD) $295.79 1.09%
Visa Inc. (V) $228.61 1.08%
Coca-Cola Co. (KO) $61.88 1.06%
Home Depot Inc. (HD) $304.72 0.89%
Procter & Gamble Co. (PG) $149.53 0.73%
Cisco Systems Inc. (CSCO) $52.28 0.68%
Travelers Company Inc. (TRV) $177.15 0.67%
Intel Corp. (INTC) $36.03 0.59%

Dow Jones - Fallers

Walt Disney Co. (DIS) $92.05 -0.96%
Dow Chemical Co. (DOW) $52.97 -0.95%
American Express Co. (AXP) $172.73 -0.62%
Walmart Inc. (WMT) $157.05 -0.43%
Microsoft Corp. (MSFT) $346.83 -0.36%
Verizon Communications Inc. (VZ) $36.31 -0.36%
Goldman Sachs Group Inc. (GS) $338.95 -0.23%
Unitedhealth Group Inc. (UNH) $465.08 -0.17%
Salesforce.Com Inc. (CRM) $211.59 -0.16%
Apple Inc. (AAPL) $185.75 -0.14%

S&P 500 - Risers

Corning Inc. (GLW) $34.97 3.35%
Adobe Systems Inc. (ADBE) $502.49 2.36%
Henry Schein Inc. (HSIC) $77.57 2.34%
Edison International (EIX) $70.33 2.22%
Nvidia Corp. (NVDA) $436.01 2.22%
Welltower Inc (WELL) $81.88 2.16%
Fidelity National Information Services Inc. (FIS) $55.13 2.00%
General Electric Co. (GE) $107.51 1.99%
NextEra Energy Inc. (NEE) $75.73 1.84%
Ventas Inc. (VTR) $46.96 1.79%

S&P 500 - Fallers

Humana Inc. (HUM) $452.26 -2.50%
Zions Bancorporation (ZION) $28.26 -2.47%
Foot Locker Inc. (FL) $27.20 -2.09%
CenturyLink Inc. (LUMN) $2.20 -2.00%
Bath & Body Works, Inc. (BBWI) $38.96 -1.91%
Alexandria Real Estate Equities Inc. (ARE) $119.10 -1.70%
Micron Technology Inc. (MU) $67.72 -1.60%
Capital One Financial Corp. (COF) $109.93 -1.54%
Dish Network Corp. (DISH) $6.14 -1.52%
Autodesk Inc. (ADSK) $218.15 -1.48%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $262.11 2.43%
Adobe Systems Inc. (ADBE) $502.49 2.36%
Henry Schein Inc. (HSIC) $77.57 2.34%
Nvidia Corp. (NVDA) $436.01 2.22%
Sirius XM Holdings Inc (SIRI) $3.90 1.83%
DENTSPLY Sirona Inc. (XRAY) $38.98 1.54%
Biogen Inc (BIIB) $301.70 1.30%
Incyte Corp. (INCY) $63.36 1.25%
Fastenal Co. (FAST) $56.92 1.21%
Paychex Inc. (PAYX) $114.43 0.99%

Nasdaq 100 - Fallers

Baidu Inc. (BIDU) $143.09 -3.78%
Micron Technology Inc. (MU) $67.72 -1.60%
Dish Network Corp. (DISH) $6.14 -1.52%
JD.com, Inc. (JD) $39.35 -1.51%
Autodesk Inc. (ADSK) $218.15 -1.48%
Netflix Inc. (NFLX) $439.35 -1.33%
Asml Holdings N.V. (ASML) $729.18 -1.29%
Qurate Retail Inc. (QRTEA) $0.91 -1.21%
Synopsys Inc. (SNPS) $441.06 -1.19%
Align Technology Inc. (ALGN) $329.33 -1.16%