US open: Stocks waver on mixed economic data, earnings

US stocks wavered on Friday as investors weighed mixed economic data and results from major lenders Wells Fargo and Citigroup.

At 1516 BST the Dow Jones Industrial Average rose 0.11%, the S&P 500 increased 0.2% but the Nasdaq fell 0.07%.

Oil prices rebounded as Chinese economic data came in better than expected with West Texas Intermediate up 1.19% to $46.23 per barrel and Brent crude up 1.29% to $47.99 per barrel at 1518 BST.

China’s gross domestic product growth of 6.7% was better than the 6.6% analysts had been expected and was in line with the previous quarter’s growth. The government is targeting an annual GDP between 6.5% and 7% for this year.

Stateside, US inflation remained unchanged in June at an annualised 1.0%, missing forecasts for 1.1% growth. On a month-on-month comparison, CPI rose at the same rate in June as the previous month by 0.2%, missing forecasts for a 0.3% gain.

Excluding food and energy, inflation rose 2.3% year-on-year in June, compared to estimates for the consumer price index to remain unchanged at 2.2%. Core CPI on a month-on-month basis increased 0.2% in June, in line with estimates and unchanged from May.

US retail sales rose more than expected in June, according to data from the Commerce Department. Sales increased 0.6% from the previous month versus expectations of a 0.1% gain. On the year, retail sales rose 2.7%.

Dennis de Jong, managing director at UFX.com, said: “Last week’s US non-farm payroll data shocked the market by coming in much better than expected, and the trick was repeated by today’s retail sales figures.

“Fed Chair Janet Yellen will be delighted to see the retail sector remain buoyant, as it was feared by some observers that consumers might keep their wallets close to their chests amid significant global uncertainty.”

US industrial rose 0.6% in June following a 0.3% decline in May, beating analysts’ expectations of 0.3% growth amid strong auto and utility production. Manufacturing output was up 0.4% month-on-month, mostly due to an increase in motor vehicle assemblies, exceeding forecasts for a 0.3% increase.

The Empire Manufacturing index –a reading of New York-area manufacturing conditions - was less positive, falling to 0.55 in July from 6.01 in May.

The University of Michigan consumer confidence index also dropped, falling to 89.5 in July from 93.5 the previous month. Analysts had expected no change.

On the corporate front, Citigroup shares gained after the lender reported second quarter results that exceeded forecasts.

Wells Fargo & Co. shares fell as it reported a drop in second-quarter profit that were in line with expectations.

US Bancorp advanced after posting an increase in second quarter profit as both loans and deposits rose.

PNC Financial Services Group shares climbed as it reported a fall in second quarter earnings that were better than analysts’ estimates.

Travel and leisure stocks were under the cosh after a terror attack in Nice that has left at least 84 people dead. A truck was driven into crowds celebrating Bastille Day in Nice, in what President Francois Hollande called an attack of "an undeniable terrorist nature". Shares in International Consolidated Airlines, TUI and easyJet fell on the news.

Shares in Delta Air Lines, American Airlines Group, United Continental Holdings Inc. and Southwest Airlines Co. slumped.