U.S. stocks higher ahead of data, Syria in focus; Dow Jones up 0.16%

Investing.com - U.S. stocks opened higher on Wednesday, ahead of U.S. pending home sales data as concerns that the Federal Reserve could soon begin tapering its stimulus program began to fade, although tensions in Syria continued to weigh on market sentiment.

During early U.S. trade, the Dow Jones Industrial Average added 0.16%, the S&P 500 index edged up 0.17%, while the Nasdaq Composite index rose 0.39%.

Concerns over the timing of a reduction in Fed stimulus eased after data on Tuesday showed that U.S. consumer confidence rose more than expected in August, hitting the highest level since January 2008.

But investors remained cautious amid growing indications that the U.S. and its allies were preparing to launch a military strikes against the Syria following the alleged use of chemical weapons.

British Prime Minister David Cameron drafted a United Nations resolution condemning the use of chemical weapons in Syria and "authorizing necessary measures to protect civilians" on Wednesday. The resolution was to be put forward at a meeting of the UN Security Council later in the day.

New York Times shares tumbled 1.30% after the newspaper reported late Tuesday that it had taken down its website after it was hacked.

Both the U.S. newspaper and Twitter Inc. reportedly had their Internet registrations hacked by the Syrian Electronic Army, rendering at least parts of their sites inaccessible.

In the tech sector, Microsoft shares climbed 0.73%, as the company was said to be within planning to boost its dividend amid calls by an activist shareholder to return more cash to investors.

Financial stocks were also in focus, following reports former JPMorgan Chase trader Javier Martin-Artajo was released from police custody after telling a Madrid court he opposed attempts by U.S. prosecutors to extradite him on charges he hid trading losses that cost the bank USD6.2 billion.

JPMorgan shares were down 0.89% at the open of the U.S. trading session. Other U.S. lenders added to losses, with Citigroup dropping 0.89% and Bank of America retreating 0.50%, while Goldman Sachs saw shares decline 0.61%.

Among earnings, mining equipment maker Joy Global posted a decline in quarterly orders and warned of sharply lower revenue, sending shares down 5.24%.

Other stocks likely to be in focus included Brown-Forman, Chico's and Williams-Sonoma, scheduled to report second-quarter earnings later in the day.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.14%, France’s CAC 40 declined 0.64%, Germany's DAX plummeted 1.39%, while Britain's FTSE 100 retreated 0.52%.

During the Asian trading session, Hong Kong's Hang Seng Index plummeted 1.60%, while Japan’s Nikkei 225 Index retreated 1.51%.

Later in the day, the U.S. was to release data on pending home sales.

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