US stocks mixed in early trading; bond yields surge

Major U.S. stock indexes wavered between small gains and losses in early trading Wednesday. Bond yields rose, sending banks higher. Energy stocks rose along with crude oil prices. Homebuilders climbed following a government report showing that new U.S. home construction rebounded strongly last month. Technology companies were the biggest laggard.

KEEPING SCORE: The S&P 500 index fell less than 1 point to 2,904 as of 10:20 a.m. Eastern Time. The Dow Jones Industrial Average rose 127 points, or 0.5 per cent, to 26,374. The Nasdaq composite lost 36 points, or 0.5 per cent, to 7,919. The Russell 2000 index of smaller companies added 5 points, or 0.3 per cent, to 1,716.

BREAKING GROUND: The Commerce Department said residential construction rebounded in August at the fastest pace in seven months. At the same time, applications for new building permits, considered a good indication of future activity, plunged. Despite the mixed signals, homebuilder shares rose. William Lyon Homes added 1.7 per cent to $19.64.

DRIVER OUT: AutoNation rose 2.5 per cent to $44.16 on news that CEO Mike Jackson is stepping down after almost two decades leading the nation’s largest auto dealership chain.

FIT FOR GROWTH: Fitbit shares gained 3.9 per cent to $6.03 after the maker of wearable exercise trackers launched a platform that offers personalized coaching. The company also announced a partnership with Humana to potentially give the insurer’s 5 million members access to the platform.

ENERGY: Benchmark U.S. crude rose 0.7 per cent to $70.37 per barrel in New York. Brent crude, used to price international oils, fell 0.1 per cent to $78.76 per a barrel in London.

Energy companies climbed along with oil prices. Halliburton gained 2.4 per cent to $40.12.

BOND YIELDS: Bond prices fell. The yield on the 10-year Treasury rose to 3.07 per cent from 3.04 per cent late Tuesday. The pickup in bond yields drove up shares in financial sector stocks. Unum Group gained 2.3 per cent to $39.36.

CURRENCIES: The dollar fell to 112.31 yen from 112.35 yen on Tuesday. The euro weakened to $1.1655 from $1.1667.

MARKETS OVERSEAS: In Europe, Germany’s DAX gained 0.4 per cent, while France’s CAC 40 rose 0.7 per cent. Britain’s FTSE 100 added 0.5 per cent. Major indexes in Asia finished mostly higher. Japan’s benchmark Nikkei 225 added 1.1 per cent, while Australia’s S&P/ASX 200 gained 0.5 per cent. Hong Kong’s Hang Seng rose 1.2 per cent. South Korea’s Kospi finished virtually unchanged.