US open: Stocks nudge up in thin trade; pending home sales and consumer confidence in focus

US stocks edged higher in early trade on Wednesday as investors digested the latest data on home sales and consumer confidence, with volumes light as many traders were still away from their desks for the holidays.

At 1530 GMT, the Dow Jones Industrial Average and the S&P 500 were up 0.1% to 24,771.24 and 2,683.72, respectively, while the Nasdaq was 0.2% firmer at 6,951.80.

Oanda analyst Craig Erlam said: "This period between Christmas and New Year is often very quiet, with politicians and central banks endeavouring to wrap everything up ahead of the holiday period. With the US having got tax reform over the line last week and kicked the budget issue back to January at the last minute, investors have been left with little to turn their attention to.

“News flow aside, trade during this week is often very thin with large numbers of people taking the week off and the lack of volatility we’ve seen so far isn’t exactly drawing traders back in. With the data calendar not looking particularly full over the coming days, I don’t hold much hope for conditions improving dramatically.”

In corporate news, Boeing nudged up after Morocco's Royal Air Maroc said it ordered four 787-9 Dreamliners valued at $1.1bn at list prices.

Apple was a little weaker following reports the technology giant is being sued for slowing down older iPhone models to compensate for poor battery performance.

Shares of Pareteum Corp were in the red following sharp gains in the previous session, when the company said it had “completed development enabling it to add support of Blockchain technology to its billing and settlement services”.

Horizon Pharma rose after the company said it has received US Food and Drug Administration approval to expand the indication for its treatment for nephropathic cystinosis, a life-threatening metabolic disorder.

Electric car maker Tesla was in the red after chief executive Elon Musk promised to make a pick-up truck as part of future plans for the company. Musk made the pledge on Twitter after asking followers for suggestions about how the company could improve. Also on Wednesday KeyBanc cut its fourth-quarter estimates for Model 3 deliveries to around 5,000 from 15,000.

On the data front, pending home sales in the US edged higher last month, according to one of the sector's leading industry groups, but existing home sales were seen flatlining in 2018 due to sharp price growth and the impact of recently approved changes to the country's tax laws.

The National Association of Realtors' pending home sales index increased at a 0.2% month-on-month clip in November to reach 109.5, versus expectations for a 0.5% drop, and was left standing 0.8% above its year-earlier level.

"The strengthening economy, and expectation that more millennials will want to buy, serve as promising signs for solid homebuying demand next year, while also putting additional pressure on inventory levels and affordability," said NAR chief economist Lawrence Yun.

"Sales do have room for growth in most areas, but nationally, overall activity could be slightly negative. Markets with high home prices and property taxes will likely feel some impact from the reduced tax benefits of owning a home."

Elsewhere, data revealed that consumer confidence declined in December a month after hitting a 17-year high, although optimism among Americans this year was the highest since 2000.

The Conference Board’s consumer confidence index fell to 122.1 in December from a revised 128.6 in November, missing expectations for a reading of 127.5.