US open: Stocks mixed after FBI director fired with crude futures rising

Wall Street was trading on a mixed note as investors digested news that President Trump has fired FBI director James Comey and amid another rebound for crude oil futures.

At 1640 BST, the Dow Jones Industrials Average was off by 0.08% at 20,958.55, while the S&P 500 was edging higher to 0.04% to 2,398.06 and the Nasdaq Composite was lower by 0.10% to 6,114.08.

Spreadex analyst Connor Campbell said: "While Comey’s shock dismissal doesn’t technically have any immediate consequences for the market, it is another reminder of the unpredictable and irresponsible nature of Trump’s governance."

In an unexpected announcement late on Tuesday, the White House confirmed that Comey had been removed from his position due to his handling of the inquiry into Hillary Clinton's email server. Trump's decision was made based on recommendations given by Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein.

News that US oil stockpiles dropped sharply last week sent front month West Texas Intermediate crude oil futures higher by 2.74% to $50.10 a barrel on the NYMEX.

On Wednesday, the Energy Information Administration reported a 5.2m barrel drop in US commercial crude oil inventories for the week ending on 5 May.

Acting as a backdrop, overnight the president of the Federal Reserve bank of Dallas told an audience that three interest rate hikes in 2017 continued to be his baseline scenario.

On the economic front, US import prices rose at a 0.5% month-on-month clip in April (consensus: 0.2%).

His remarks weighed on longer-term US government yields, with those on the benchmark 10-year US Treasury note slipping by two basis points to 2.38%.

In corporate news, Priceline was weaker after it issued a weak earnings outlook late on Tuesday.

Shares in video game-maker Electronic Arts began the session trading on the frontfoot following better-than-expected earnings. Stock in Walt Disney on the other hand slipped following stronger-than-expected earnings, even as it missed revenue.

Dow Jones - Risers

Chevron Corp. (CVX) $106.79 1.62%
Caterpillar Inc. (CAT) $100.47 1.19%
Travelers Company Inc. (TRV) $120.71 0.63%
JP Morgan Chase & Co. (JPM) $87.25 0.58%
Goldman Sachs Group Inc. (GS) $224.92 0.52%
Procter & Gamble Co. (PG) $86.73 0.38%
Merck & Co. Inc. (MRK) $63.49 0.31%
Home Depot Inc. (HD) $157.95 0.17%
E.I. du Pont de Nemours and Co. (DD) $79.56 0.09%
Microsoft Corp. (MSFT) $69.06 0.03%