Forexpros – U.S. stock markets were lower after the open on Wednesday, as investors looked ahead to a second day of testimony by Federal Reserve Chairman Ben Bernanke, while upbeat U.S. housing data further dampened speculation over near-term easing in the U.S.
Investors also digested a flurry of earning reports from companies such as Bank of America and Blackrock.
During early U.S. trade, the Dow Jones Industrial Average dipped 0.3%, the S&P 500 index shed 0.2% while the Nasdaq Composite index eased down 0.15%.
Market participants continued to mull over mixed messages from the U.S. central bank after Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook in testimony to the Senate on Tuesday, but failed to explicitly indicate if additional stimulus measures are imminent.
Bernanke was due to testify on the economy and monetary policy in front of the House Financial Services Committee later in the session.
Earlier in the day, official data showed that the number of housing starts rose more-than-expected in June, hitting the highest level since April 2010.
The Commerce Department said U.S. housing starts rose by 6.9% in June to a seasonally adjusted 0.760 million, compared to expectations for a gain of 5.2%.
Housing starts for May were revised up to 0.711 million units, up from a previously reported 0.708 million units.
The report said the number of building permits issued fell 3.7% in June to a 755,000 unit pace.
In earnings news, shares in Bank of America lost 1% after the lender said it earned USD2.46 billion in the second quarter, above expectations for income of USD2.35 billion. The bank lost USD8.83 billion in the same quarter a year earlier.
Revenue totaled USD21.97 billion, missing street expectations for revenue of USD22.71 billion.
Shares in TV listings data company Rovi plunged 41% after the company reported preliminary second quarter results that reflected lower revenue and a wider loss.
The firm also issued a 2012 outlook that came in significantly below Wall Street expectations.
Shares in Blackrock slumped 2.3% after the world’s biggest money management firm reported a 3% drop in second quarter profit. Revenue fell 5% to USD2.2 billion.
On the upside, U.S.-listed shares of Credit Suisse jumped 2.4% after reporting a 3.6% rise in net profit for the second quarter and said it aims to boost capital by USD15.6 billion before year-end.
Investors also awaited a slew of corporate earnings from heavyweights such as American Express, IBM, eBay and Qualcomm all due after Wednesday’s closing bell.
Across the Atlantic, European stock markets were mildly higher. The EURO STOXX 50 rose 0.55%, France’s CAC 40 added 0.95%, Germany’s DAX gained 0.35%, while Britain’s FTSE 100 eased up 0.25%.
European equities came off their highest levels of the session after German Chancellor Angela Merkel said in an interview that she was not certain the European project would be successful, but reiterated that she was optimistic in spite of the current difficulties.
Earlier in the day, Germany auctioned more than EUR4 billion of two-year government bonds at negative yields for the first time at this type of auction, reflecting sustained investor concerns over the debt crisis in the region.
In the U.K., the minutes of the Bank of England’s July meeting showed that seven of the nine member monetary policy committee, including Governor Mervyn King, voted to implement a further GBP50 billion of stimulus measures, citing “very substantial risks” to the U.K. economy from developments in the euro zone.
Separately, official data showed that the unemployment rate in the U.K. unexpectedly ticked down to 8.1% in June from 8.2% in May as the London Olympics helped to create extra jobs.
During the Asian trading session, Hong Kong’s Hang Seng Index tumbled 1.3%, while Japan’s Nikkei 225 retreated 0.25%.
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