US open: Stocks mixed as traders await non-farm payrolls

US stocks were mixed on Tuesday as traders looked ahead to the non-farm payrolls report at the end of the week.

At 1503 BST the Dow Jones Industrial Average fell 0.06% to 18,490.56 points, the S&P 500 dipped 0.01% to 2,180.35 points and the Nasdaq rose 0.14% to 5,239.91 points.

Oil prices rose as operators in the US Gulf of Mexico shut production due to a tropical storm, easing worries about global supply glut. West Texas Intermediate crude grew 0.69% to $47.31 per barrel and Brent climbed 0.60% to $49.56 per barrel at 1507 BST.

Joshua Mahony, market analyst at IG, said: “Much like last week, which saw traders spend their time anticipating Friday’s speech from Yellen, this week will also see a crescendo of anticipation into the August payrolls figure, which according to Stanley Fischer represents a deal breaker regarding whether the Fed will indeed raise rates in 2016.

“Following relatively robust numbers in the past two months, another 200K-plus figure could provide the spark needed for the committee to act this year, with markets currently pricing in a 61.4% chance. Given the threat associated with the US election in November, the likelihood is that December provides the best chance for action from the Fed.”

In her speech at the Jackson Hole symposium last week, Fed Chair Janet Yellen noted that the US economy is improving and suggested the case for a move on rates had strengthened in recent months.

Meanwhile Fed Reserve vice chair Stanley Fischer told Bloomberg that while negative interest rates seem to be working in other countries, the US central bank is not “planning to do anything in that direction”.

In economic data, US house price growth slowed in June. The S&P Core Logic Case-Shiller 20-City Composite index rose 5.1% year-on-year, compared to expectations for an increase of 5.2% and May's revised 5.3% increase.

A gauge of US consumer confidence rose to the highest level in nearly a year in August. The Conference Board’s consumer confidence index edged up to 101.1 in August from 96.7 in July, beating estimates of 97.0.

“On the whole, the US consumer has remained a robust proposition within an international context of weakening demand, and the positive data may put the long-speculated interest rate hike further up Yellen’s agenda,” said Dennis de Jong, managing director of UFX.com.

“The real test, however, is whether this confidence begins to waver as we enter what will surely be the most contentious US presidential race in living memory.”

On the corporate front, Abercrombie & Fitch shares plunged as reported a second quarter loss that was worse than expected as sales fell for a 14th straight quarter.

Apple was under the cosh after the European Commission ruled that Ireland should recover up to €13bn from the technology giant in back taxes.

Hershey shares tumbled after Mondelez International said late on Monday it has ended its bid to buy the chocolate maker.

United Continental Holdings was in the black after it said late on Monday that it has named Scott Kirby as president.