US open: Stocks slightly higher following heavy losses in previous session

Wall Street stocks traded slightly higher on Wednesday following yesterday's heavy CPI-fuelled losses.

As of 1510 BST, the Dow Jones Industrial Average was up 0.27% at 31,187.42, while the S&P 500 was 0.41% firmer at 3,948.75 and the Nasdaq Composite came out the gate 0.50% stronger at 11,692.21.

The Dow opened 82.45 points higher on Wednesday, taking only a very modest bite out of losses recorded in the blue-chip's worst session in more than two years.

After August's consumer price index showed that headline inflation rose 0.1% month-on-month, despite a drop in gas prices throughout the period, Wednesday's primary focus will be last month's producer price index. The Bureau of Labor Statistics revealed that producer Prices in the US decreased to 139.74 in August, down from 139.92 in July and an encouraging sign after yesterday's CPI report as it suggests that inflation has begun to decelerate in certain parts of the economy.

Elsewhere on the macro front, US mortgage applications fell 1.2% week-on-week in the seven days ended 9 September, according to the Mortgage Bankers Association, marking a fifth consecutive week of declines amid rising interest rates. Applications to refinance a home loan fell 4.2%, easily erasing a 0.2% uptick in purchase applications, as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 6.01% - the highest level seen since 2008.

Also in focus, Treasury yields also advanced early on Wednesday, with the benchmark 10-year note sitting at roughly 3.432% after the opening bell and the 2-year note rising more than 20 basis points to 3.784%.

No major corporate earnings were slated for release on Wednesday.

Reporting by Iain Gilbert at Sharecast.com