US open: Weak data weighs on shares, banks outperform

Weaker than expected readings on consumer confidence weighed on Wall Street early in the session even as investors eyed a speech by Federal Reserve chair Janet Yellen later in the day.

At 1741 BST, the Dow Jones Industrial Average was off by 0.05% or 10.65 points to 21,399, alongside a retreat of 0.19% or 4.53 points for the S&P 500 and a 0.18% or 4.41 point drop in the Nasdaq Composite to 6,208.45.

From a sector standpoint the biggest losses were being seen in the following industrial groups: Toys (-1.59%), Internet (-1.39%) and Hotels (-1.35%). The KBW index of lenders' shares was ahead by 1.60% to 93.60 with shares in Bank of America figuring as the most heavily traded on the NYSE.

US house prices rose by 0.2% month-on-month in April, according to the S&P/Case-Shiller, for the smallest gain since May 2014.

Following the data, analysts at Capital Economics said the apparent easing in momentum was most likely the result of "residual seasonality".

"We suspect residual seasonality is the prime cause of the apparent easing in momentum, and price growth is therefore likely to pick-up soon," they added.

Consumer confidence on the other hand strengthened in June.

The Conference Board's index for consumer sentiment increased from 117.6 in May to 118.9 for June. However, the key subdindex linked to consumer expectations in fact fell, from 102.3 to 100.6, even if it was offset by improved sentiment around the 'current situation'.

Acting as a backdrop, investors were waiting on a speech from Fed chair Janet Yellen.

Ahead of her remarks, speaking at an IMF event her number two, Fed vice-chairman Stanley Fischer said higher valuations in stockmarkets were being driven by a brighter economic outlook and increased risk appetite.

Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari were due to speak later in the day.

In corporate news, shares in Google's parent company, Alphabet, were weaker as the European Commission slapped the tech giant with a record €2.4bn fine for promoting its own shopping comparison service ahead of competitors.

Sprint surged following a report that it is in exclusive talks with Charter Communications and Comcast on a potential wireless services deal.