US open: Dow Jones trades higher after Powell addresses ECB forum

dl exchange place wall st street pl new york city nyc ny nyse stock exchange dow jones sp nasdaq finance dollar dollars us usa united states of america — Exchange PlaceSharecast photo / Josh White

Wall Street trading got off to a mixed start on Wednesday as market participants digested comments from Federal Reserve chairman Jerome Powell at the European Central Bank forum.

As of 1530 BST, the Dow Jones Industrial Average was up 0.42% at 31,077.05, while the S&P 500 traded 0.07% firmer at 3,824.18 and the Nasdaq Composite came out the gate 0.05% softer at 11,175.87.

The Dow opened 130.06 points higher on Wednesday, doing little to reclaim losses recorded in the previous session when market participants came to terms with news that consumer confidence had hit a 16-month low.

Market participants were firmly focussed on goings-on across the pond on Wednesday, with Fed chairman Jerome Powell saying the US economy was in "strong shape" and that the central bank will be able to reduce inflation to 2% at the same time as maintaining a solid labour market.

On the macro front, the US economy shrank at a 1.6% annual clip in the first quarter of 2022, according to the Bureau of Economic Analysis, a sharp reversal from the 6.9% increase in the fourth quarter after corporate profits fell more than originally expected.

Elsewhere, mortgage applications rose 0.7% week-on-week in the seven days ended 24 June, according to the Mortgage Bankers Association, as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 5.84% from 5.98%.

In the corporate space, Bed, Bath and Beyond revealed chief executive Mark Tritton will depart the group after reporting a $357.7m first-quarter loss, while General Mills issued disappointing full-year profit guidance.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Nike Inc. (NKE) $105.30 2.45%
McDonald's Corp. (MCD) $247.10 1.76%
Microsoft Corp. (MSFT) $260.47 1.56%
Goldman Sachs Group Inc. (GS) $304.01 1.51%
Apple Inc. (AAPL) $139.38 1.42%
Amgen Inc. (AMGN) $246.34 1.16%
Home Depot Inc. (HD) $273.13 1.10%
Unitedhealth Group Inc. (UNH) $513.94 1.08%
Merck & Co. Inc. (MRK) $92.86 1.06%
Coca-Cola Co. (KO) $62.79 0.82%