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U.S. stocks open lower, ISM report ahead; Dow Jones down 0.43%

Published 01/02/2014, 09:38 AM
U.S. stocks fall ahead of ISM report
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Investing.com - U.S. stocks opened lower on Thursday, as the release of disappointing U.S. jobless claims data weighed on market sentiment, while investors eyed an upcoming report on U.S. manufacturing activity.

During early U.S. trade, the Dow Jones Industrial Average shed 0.43%, the S&P 500 index declined 0.47%, while the Nasdaq Composite index dropped 0.61%.

Market sentiment weakened after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000.

Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000.

Markets were also jittery after a report on Thursday showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November.

The data was published one day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.

Hertz Global Holdings climbed 0.59% as the car-rental company said earlier in the week that it had adopted a one-year shareholder rights plan after "unusual and substantial activity" in its shares.

Phillips 66 slid 0.34% after saying Berkshire Hathaway would exchange about USD1.4 billion in shares to acquire a unit that produces chemicals to improve pipeline flow. Berkshire Hathaway shares slipped 0.22% at the open of the U.S. trading session.

In the tech sector, Apple tumbled 1.10% after Wells Fargo downgraded the stock to "market perform" from "outperform".

Elsewhere, Wal-Mart saw shares rise 0.22% after the retailer said it had recalled donkey meat sold in China after tests showed the food contained the DNA of other animals.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 tumbled 0.92%, France’s CAC 40 lost 1.07%, Germany's DAX declined 0.80%, while Britain's FTSE 100 fell 0.26%.

During the Asian trading session, Hong Kong's Hang Seng Index added 0.14%, while Japan’s Nikkei 225 Index remained shut for a national holiday.

Later in the day, the Institute of Supply Management was to release a report on manufacturing activity in the U.S.


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