US open: Stocks struggle for direction ahead of Yellen's speech

US equities struggled for direction early on Thursday, as investors awaited a speech from Federal Reserve chairwoman Janet Yellen and analysed the latest moves from the European Central Bank.

Shortly after 1500 GMT, the Dow Jones Industrial Average was down 32 points to 17,697.21, while the S&P 500 and the Nasdaq were two and 10 points higher respectively.

Yellen will give testimony to the Joint Economic Committee of Congress at 1500 GMT.

On Wednesday, the Fed chairwoman provided arguably her most hawkish offering of the past few months, as she hinted that December’s FOMC meeting should see a rate-hike lift-off.

“Yellen was very bullish on the economy and claimed she is looking forward to raising rates,” said Oanda’s senior market analyst Craig Erlam.

“More of this talk today would surely be a direct intentional signal to the markets that rates are rising in two weeks.”

On the macroeconomic front, the Department of Labour said new unemployment claims rose by 9,000 to 269,000 in the week to 28 November, compared with analysts' expectations for a 270,000 reading.

"The trend in claims is consistent with payroll growth in excess of 250,000 but in the short-term the numbers can diverge widely," said Ian Shepherdson chief economist at Pantheon Macroeconomics.

Meanwhile, the Institute for Supply Management's (ISM) non-manufacturing index, which surveys the sector's purchasing and supply executives, tumbled to 55.9 from 59.1 in October and compared with analysts’ expectations for a 58 reading.

Still to come, at 1500 GMT investors will analyse readings on durable goods and factory orders for October.

Market participants will also hear from Fed Vice chairman Stanley Fischer who will give a speech at the Cleveland Fed conference on financial stability at 1810 GMT

In company news, Yahoo slid 0.57% after a number of firms have emerged as potential suitors for the group’s core internet business.

Dollar General climbed 2.83% after its quarterly profit beat expectations but sales fell short of consensus.

According to sources cited by the Wall Street Journal, IAC/InterActive and Verizon Communications are among the companies interested.

Elsewhere, Asian stocks were mixed as a result of an overnight decline in oil prices and concerns over higher interest rates in the US, while European stocks advanced after the European Central Bank cut its deposit rates to -0.30% as widely expected, but left other rates unchanged.

Oil prices rebounded as OPEC’s two-day meeting kicked off in Vienna, with West Texas Intermediate rising 1.43% to $40.52 a barrel, while Brent jumped 2.19% to $43.44 a barrel.

The dollar was broadly flat against the yen and plunged 0.56% and 1.85% against the pound and the euro respectively, while gold spot gained 0.38% to $1,057.67.