US open: Stocks waver as investors digest mixed data releases

US stocks wavered in holiday-thinned trade, coming off opening highs as investors digested some mixed data releases, although a slight recovery in oil prices provided some relief for the energy sector.

At 1520 GMT, the Dow Jones Industrial Average was up 0.1%, while the S&P 500 and the Nasdaq were flat.

"US markets may have a battle on their hands to keep hold of yesterday's Santa-inspired gains", said Spreadex financial analyst Connor Campbell.

The final estimate of third quarter US gross domestic product was revised lower on Wednesday, but still came in a touch better than expected.

According to the Commerce Department, US GDP rose an annualised 2% in the third quarter. This marked a downward revision from the second estimate of 2.1% but beat economists’ forecasts of 1.9%.

In the second quarter, GDP increased 3.9%.

Meanwhile, the value of inventories rose $85.5bn, down from the previous estimate of $90.2bn. Inventories gained $113.5bn in the second quarter.

Spending on home construction jumped 8.2% in the third quarter, revised up from a prior estimate of 7.3%.

US personal consumption gained 3% in the third quarter, in line with the previous estimate and beating forecasts for a 12.9% increase.

The core PCE index unexpectedly increased to 1.4% quarter-on-quarter in the third quarter from a prior estimate of 1.3%.

PCE is a measure of GDP and the Federal Reserve's preferred measure of inflation. The US central bank is targeting 2% inflation.

Elsewhere, figures from the National Association of Realtors showed sales of existing US homes fell sharply in November, to their lowest pace in 19 months.

Existing home sales dropped 10.5% to an annual rate of 4.76m from a downwardly-revised 5.32m in October and compared with consensus estimates for an increase to 5.35m.

Lawrence Yun, NAR chief economist, said multiple factors led to November's sales decline, but the primary reason could be an anomaly as the industry adjusts to the new 'Know Before You Owe' rule.

On the corporate front, Google and Ford were higher amid expectations that the two companies will be teaming up on a self-driving project.

Wearable action camera company GoPro was a high riser after it said a new GoPro Channel has become available on PlayStation gaming systems.

Fashion retailer Abercrombie & Fitch gained ground after it appointed Fran Horowitz to the newly-created role of chief merchandising officer.

Chipotle was in the red after as JPMorgan downgraded the stock to ‘neutral’ from ‘overweight’ following the latest E.coli outbreak at some of its outlets.

Energy-related shares got a break on Tuesday, with West Texas Intermediate up 0.3% to $35.93 a barrel and Brent crude down 0.5% at $36.18, but off the 11-year lows hit in the previous session.

The US dollar was 0.3% higher against the pound, 0.6% weaker against the euro and 0.4% lower versus the yen.