US open: Stocks mixed following Memorial Day break

Wall Street stocks were mixed early on Tuesday as markets returned from an extended break for the Memorial Day long weekend.

As of 1545 BST, the Dow Jones Industrial Average was up 0.36% at 34,654.20, while the S&P 500 was 0.14% firmer at 4,210.10 and the Nasdaq Composite came out the gate 0.10% weaker at 13,734.84.

The Dow opened 124.75 points higher on Tuesday, extending gains recorded on Friday amid a further drop in the number of new Covid-19 cases reported across the country.

Stocks reliant on a reopening of the US economy were trading higher at the open, with the likes of Carnival, Norwegian Cruise Line and Boeing all in the green.

American Airlines and United stock also picked up early gains after the Transportation Security Administration stated it had screened an average of 1.78m people between Friday and Monday - a significantly higher volume than seen a year earlier.

The moves also came after the Centers for Disease Control said more than half the US population had received at least one dose of a Covid vaccination, with more than 62% of adults receiving at least one dose. Optimism was further boosted by news that the US recorded just 12,663 new cases on Saturday, the lowest figure seen since March 2020.

AMC Entertainment was also in focus after the opening bell, jumping 12.98% at the start of the session after selling $230.5m in new stock to an investor.

Still to come, Zoom Video and Hewlett Packard will both report their latest quarterly earnings results after the bell.

On the macro front, IHS Markit's final manufacturing PMI for May improved to 62.1 from 60.5 in April, ahead of a flash estimate and market expectations for a print of 61.5, indicating an ongoing expansion in the manufacturing sector's business activity.

Elsewhere, the ISM's manufacturing PMI edged higher in May, coming in at 61.2, ahead of an expected reading of 60.7.

Still on data, US construction spending increased less than expected in April, with spending edging just 0.2% higher after surging 1.0% in March, according to the Commerce Department, as gains in private homebuilding were offset by losses in outlays on non-residential structures and public projects.