US open: Markets unchanged as investors await data on the housing market

Markets were largely unchanged on Wednesday, as the S&P 500 sought to avoid a first four-session declining streak since December.

Monday’s poor figures on home sales showed a potential weakness in the market during August, with investors remaining cautious ahead of Wednesday’s data on the housing market. New home sales are expected to rebound to a 430,000 annualised pace after two months of decline, according to economists’ estimates in a Bloomberg survey.

For the second consecutive day there were disappointing figures out from Germany, with the country’s IFO business climate survey falling to 104.7, its lowest level since April 2013.

It was the fifth consecutive time the parameter has fallen and prompted IFO analysts to say that the “German economy is no longer running smoothly”, at a time when the European Central Bank is under pressure to implement measures to generate growth of inflation and output.

US Treasury prices fell as investors awaited a five-year note auction, with the yield on the benchmark US 10-year Treasury note rose 0.01%, while the 30-year Treasury bond yield moved up to 3.251% and the two-year note yield remained stable at 0.578%.

Accenture shares fell in premarket trading as the consulting group issued cautious forecasts for its next fiscal year, while Morgan Stanley dropped back slightly after J.P. Morgan downgraded its rating on the financial firm from overweight to neutral.

KB Home fell markedly before the bell as the company reported third quarter earnings and revenue that fell short of forecast, while Merrimack Pharmaceuticals surged after the firm said it agreed a deal to develop and market its pancreatic cancer drug outside the US.

Having posted better-than-expected quarterly earnings on Tuesday, Bed, Bath & Beyond share surged in premarket trade, while Lipocine registered a record 21% leap ahead of the company’s conference call to discuss the latest results and developments of its late-stage study of an oral Androgen replacement.

The dollar rose slightly against the pound, euro and yen despite concerns over the geopolitical tension in Syria, while West Texas intermediate crude was stable and traded at just over $91 a barrel.