U.S. stocks higher amid central bank speculation; Dow Jones up 0.05%

Investing.com - U.S. stocks opened higher on Wednesday, following the release of disappointing U.S. economic data, as global growth concerns added to hopes for fresh easing measures by world central banks.

During early U.S. trade, the Dow Jones Industrial Average eased up 0.05%, the S&P 500 index added 0.18%, while the Nasdaq Composite index rose 0.29%.

Data showed earlier that the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected in August, slipping below zero for the first time since October 2011.

The Federal Reserve Bank of New York said that its general business conditions index fell by 13.2 points to minus 5.8 in August from a reading of 7.4 in July. 

Separately, official data showed that consumer prices were unchanged in July for the second consecutive month, compared to expectations for a 0.2% rise, while core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase.

Data earlier in the week showing that economic growth in Japan and the euro zone contracted in the second quarter kept alive hopes that world central banks will implement more easing measures to spur the global economic recovery.

Philip Morris was among a number of tobacco companies in focus on Wednesday, with shares dropping 0.23%, after Australia set a global precedent for tobacco control earlier in the day, when its High Court rejected the tobacco industry's argument that the Federal Government's plain-packaging laws are unconstitutional.

Among earnings, Staples dove 15.27% after the office-supply retailer missed quarterly results and cut its outlook for the year.

Agricultural equipment maker Deere also tumbled 6.65% after the company missed earnings expectations, hurt by weak sales in China, India and other emerging markets.

On the upside, Abercrombie & Fitch surged 9.84% after the teen retailer posted earnings that topped the tepid guidance it provided two weeks ago, but the company warned that sales would be tepid throughout the back-to-school and holiday seasons.

Elsewhere in retail stocks, Target jumped 1.77% after posting flat earnings. However, the company boosted its full-year forecast, thanks to more customers shopping at its expanded food sections.

In the financial sector, stocks were broadly higher, led by bank of America, up 0.51%, and closely followed by Goldman Sachs, whose shares climbed 0.50%, while Citigroup and JP Morgan added 0.21% and 0.27% respectively.

Reuters reported earlier that Goldman Sachs CEO Lloyd Blankfein and other bank officials won the dismissal of a shareholder lawsuit accusing them of tolerating poor mortgage practices and quitting a federal bailout program early to boost executive pay.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 dipped 0.01%, France’s CAC 40 added 0.10%, Germany's DAX fell 0.34%, while Britain's FTSE 100 dropped 0.35%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.18%, while Japan’s Nikkei 225 Index eased 0.05%.

Also Wednesday, the Federal Reserve said that industrial production in the U.S. rose by 0.6% in, beating expectations for a 0.6% increase and following a 0.1% rise the previous month.