US stocks open higher amid data, earnings

U.S. stocks dropped on Monday as energy companies slid along with the price of oil.

The Dow Jones Industrial Average lost 46.37 points (0.27 per cent) at 17,373.38.

Investors will also keep a close eye on Friday’s non-farm payrolls report for any further clues on the federal reserve’s first rate hike in nearly nine years.

The S&P 500 index is up 39.14 points, or 1.9 percent.

The Institute for Supply Management said the service sector expanded 4.3 percent in July to a record high.

Online coupon company Groupon (NasdaqGS: GRPN – news) lost 5.3 percent on earnings that translated into two cents per share, a penny shy of analyst expectations on sales that came in about $2 million below the analyst estimate of $740.25 million. Concerns about China’s economy hurt US industrial stocks as well as Apple, which relies on that country for much of its iPhone sales.

American Express fell 0.3 per cent after a US judge threw out a proposed class-action settlement with merchants on litigation over AmEx swiping fee restrictions.

“It’s a very solid report”, Faucher said.

The company, which owns the Jimmy Dean breakfast sausage brand, blamed conditions in the beef market for its woes, citing high cattle costs and “export issues” as factors that were hurting its profits.

The Nasdaq composite is down 84.74 points, or 1.7 percent.

Insurer Allstate fell 10.2 per cent after a rise in payments for auto accidents dented second-quarter earnings, while handbag and accessories retailer Coach rose 3.2 per cent after reporting better-than-expected results.

London’s benchmark FTSE 100 index slipped 0.03 per cent to finish at 6,686.57 points.

European markets were lower today, with the Spanish Ibex Index falling 0.32 percent, STOXX Europe 600 Index dropping 0.38 percent and German DAX 30 index declining 0.40 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.27 percent from 2.23 percent Tuesday, while the 30-year advanced to 2.95 percent from 2.90 percent.