(Reuters) - U.S. stocks fell at the open on Wednesday as investors took a rise in U.S. interest rates as a cue to take profits a day after the market closed at fresh 2-1/2 year highs.

U.S. 10-year Treasury note yields hit new nine-month highs before a $24 billion auction of notes later on Wednesday. Higher yields make bonds a more attractive investment and also translate into costlier funding for corporations.

"Earnings are fine, the economy continues to show signs of life but we do have this interest rate headwind (and) Treasury yields moving higher that the U.S. equity market can't continue to ignore," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

Federal Reserve Chairman Ben Bernanke is scheduled to testify on the economy at 10 a.m. before a House of Representatives committee. Last week he said the recovery still needs help from the Fed despite signs of improvement.

Shares of Dow components Coca Cola Co (KO.N) and Walt Disney Co (DIS.N) jumped after both reported strong results.

The Dow Jones industrial average .DJI dipped 2.91 points, or 0.02 percent, to 12,230.24. The Standard & Poor's 500 Index .SPX fell 3.22 points, or 0.24 percent, to 1,321.35. The Nasdaq Composite Index .IXIClost 5.07 points, or 0.18 percent, to 2,791.98.

The S&P 500 faces strong resistance in the 1,324-1,333 area, with the upper limit coinciding with a 100 percent advance from the lows hit in March 2009. Short-term technical support for the benchmark kicks in at 1,313.

(Reporting by Rodrigo Campos, Editing by Chizu Nomiyama)

• Add new comment

Your name : *

Your e-mail address :*

Comment: *

Your Message Goes Here

CAPTCHA*

Save Comment