Investing.com - U.S. stock markets were lower after the open on Tuesday, after a report showed that U.S. retail sales rose less-than-expected in January, while markets continued to eye developments surrounding the euro zone’s debt crisis.
During early U.S. trade, the Dow Jones Industrial Average fell 0.2%, the S&P 500 index declined 0.25%, while the Nasdaq Composite index shed 0.3%.
U.S. equities came under pressure after official data showed that retail sales rose by 0.4% in January, falling short of expectations for a 0.8% increase.
December’s figure was revised down to a flat reading from a previously reported 0.1% increase. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Also weighing on sentiment, Moody's downgraded the credit ratings on six European countries, including Spain and Italy late Monday. France and Austria kept their top ratings but had their outlooks dropped to "negative" from "stable."
Moody's also cut its ratings on Portugal, Slovakia, Slovenia and Malta, while warning that it could downgrade top-rated U.K., rekindling contagion worries.
Shares in the financial sector came under pressure as investors awaited further developments surrounding Greece. Attention now shifts to a meeting Wednesday of euro zone finance ministers, who will discuss the approval of the debt-laden country’s second bailout before a March 20 deadline.
Bank of America saw shares drop 1.7%, Citigroup shares fell 2.1%, while U.S. listed shares of Deutsche Bank and National Bank of Greece retreated 2.15% and 2.85% respectively.
In earnings news, Goodyear Tire & Rubber Company shares tumbled 6.25% after reporting fourth quarter revenue of USD5.7 billion, falling short of market expectations for sales of USD5.88 billion.
Building products company Masco Corporation saw shares plunge 11.35% after reporting a wider-than-expected fourth quarter loss and revenue that missed market expectations.
On the upside, high-end fashion retailer Michael Kors Holdings, which went public in mid-December, saw shares rally 18.8% after reporting a stronger-than-expected 47% increase in fiscal third quarter earnings, as revenue grew more-than-expected.
Watson Pharmaceuticals saw shares gain 3.7% after posting a 62% jump in fourth quarter revenue, as sales were fuelled by generic versions of Pfizer's Lipitor cholesterol treatment and Johnson & Johnson's Concerta attention deficit hyperactivity disorder drug.
Consumer electronics giant Apple added 0.5% after the Wall Street Journal reported earlier that the company was working with component suppliers in Asia to test a new tablet computer with a smaller screen. Apple shares closed at a record high USD502.60 a shares on Monday.
Across the Atlantic, European stock markets were lower in choppy trade. The EURO STOXX 50 shed 0.1%, France’s CAC 40 declined 0.2%, Germany's DAX fell 0.15%, while Britain's FTSE 100 eased down 0.15%.
During the Asian trading session, Hong Kong's Hang Seng Index added 0.15%, while Japan’s Nikkei 225 Index rose 0.6%, after the Bank of Japan unexpectedly announced further stimulus measures to boost growth.
Later in the day, the U.S. was to produce official data on business inventories. Also Tuesday, U.S. Treasury Secretary Timothy Geithner was to testify on President Barack Obama’s budget request for fiscal 2013, at the Senate Finance Committee.
During early U.S. trade, the Dow Jones Industrial Average fell 0.2%, the S&P 500 index declined 0.25%, while the Nasdaq Composite index shed 0.3%.
U.S. equities came under pressure after official data showed that retail sales rose by 0.4% in January, falling short of expectations for a 0.8% increase.
December’s figure was revised down to a flat reading from a previously reported 0.1% increase. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Also weighing on sentiment, Moody's downgraded the credit ratings on six European countries, including Spain and Italy late Monday. France and Austria kept their top ratings but had their outlooks dropped to "negative" from "stable."
Moody's also cut its ratings on Portugal, Slovakia, Slovenia and Malta, while warning that it could downgrade top-rated U.K., rekindling contagion worries.
Shares in the financial sector came under pressure as investors awaited further developments surrounding Greece. Attention now shifts to a meeting Wednesday of euro zone finance ministers, who will discuss the approval of the debt-laden country’s second bailout before a March 20 deadline.
Bank of America saw shares drop 1.7%, Citigroup shares fell 2.1%, while U.S. listed shares of Deutsche Bank and National Bank of Greece retreated 2.15% and 2.85% respectively.
In earnings news, Goodyear Tire & Rubber Company shares tumbled 6.25% after reporting fourth quarter revenue of USD5.7 billion, falling short of market expectations for sales of USD5.88 billion.
Building products company Masco Corporation saw shares plunge 11.35% after reporting a wider-than-expected fourth quarter loss and revenue that missed market expectations.
On the upside, high-end fashion retailer Michael Kors Holdings, which went public in mid-December, saw shares rally 18.8% after reporting a stronger-than-expected 47% increase in fiscal third quarter earnings, as revenue grew more-than-expected.
Watson Pharmaceuticals saw shares gain 3.7% after posting a 62% jump in fourth quarter revenue, as sales were fuelled by generic versions of Pfizer's Lipitor cholesterol treatment and Johnson & Johnson's Concerta attention deficit hyperactivity disorder drug.
Consumer electronics giant Apple added 0.5% after the Wall Street Journal reported earlier that the company was working with component suppliers in Asia to test a new tablet computer with a smaller screen. Apple shares closed at a record high USD502.60 a shares on Monday.
Across the Atlantic, European stock markets were lower in choppy trade. The EURO STOXX 50 shed 0.1%, France’s CAC 40 declined 0.2%, Germany's DAX fell 0.15%, while Britain's FTSE 100 eased down 0.15%.
During the Asian trading session, Hong Kong's Hang Seng Index added 0.15%, while Japan’s Nikkei 225 Index rose 0.6%, after the Bank of Japan unexpectedly announced further stimulus measures to boost growth.
Later in the day, the U.S. was to produce official data on business inventories. Also Tuesday, U.S. Treasury Secretary Timothy Geithner was to testify on President Barack Obama’s budget request for fiscal 2013, at the Senate Finance Committee.