US stocks open with modest losses as OPEC deal optimism recedes

The initial optimism over a preliminary agreement among major oil producers seems to have faded, with the major US equity indices opening with modest losses on Thursday. Major oil producers reached to a consensus that a production cut was needed to stabilize oil prices and agreed on a deal to cap output, which helped boost investor sentiment and lifted US stocks during late trade on Wednesday. 

At opening, the Dow Jones Industrial Average was off 20 points to 18,320 and the broader S&P 500 index fell around 4 points to 2,168. Meanwhile, tech-heavy Nasdaq composite slipped 8 points to 5,310.

On the US economic data front, the second-quarter GDP growth was revised higher while initial jobless claims data continued pointing towards steady improvement in the labor market. The US equity markets, however, did not react to upbeat economic releases and continued trading with mild negative bias.

Later during the day, Philadelphia Fed President Patrick Harker, Atlanta Fed President Dennis Lockhart, Fed Gov. Jerome Powell and Minneapolis Fed President Neel Kashkari are scheduled to make public appearances while Fed Chairwoman Janet Yellen will take part in a videoconference for the Kansas City Fed.

In other markets, US Dollar was marginally higher and was seen weighing on gold prices. Meanwhile, crude oil managed to recover early losses and has now moved back above $47.00/barrel mark.