US Stocks Open Lower on Disappointing Earnings and Drop in Crude Oil Prices

US Stocks Open Lower on Disappointing Earnings and Drop in Crude Oil Prices

11 May 2016, 16:28
Roberto Jacobs
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US Stocks Open Lower on Disappointing Earnings and Drop in Crude Oil Prices

Major US equity indices opened lower on Wednesday as disappointing earnings and a minor weakness in crude oil prices weighed on investor sentiment.

In early trade, the Dow Jones Industrial Average lost over 80 point to 17,845 and the S&P 500 was down 8 points at 2,077. Meanwhile, tech heavy Nasdaq Composite index is trading at 4,795, with a cut of around 15 point. Wednesday's drop is occurring a day after the S&P 500 and the Dow logged their biggest percentage gains in over two-months.

In absence of any major economic releases, investors will closely watch the weekly report on US crude oil inventories data, which has the potential trigger volatile moves in crude oil prices. Buoyant oil prices would contribute to improve investor sentiment and would increase their appetite towards riskier assets like stocks. Investors, however, remained skeptic over the sustainability of the recent rally witnessed across global markets since February.

Mixed global markets

European stock indices were trading lower for the first time in three sessions. The broader European index, the Stoxx Europe 600 was down around 0.7% to 334. Meanwhile, Asian markets witnessed a choppy session with the Nikkei Stock Average ended flat with a slight positive bias, up 0.1%. However, late weakness in Hong-Kong markets dragged the HangSang index down by 0.9%. The Chinese, Shanghal Composite index, swung between positive and negative territory to eventually finish up by 0.2%.


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