Stock indexes were modestly lower in early trading Tuesday amid mixed earnings reports and lower European and Japanse stocks.
European equities wobbled on disappointing quarterly results and pressure on the banking sector. In corporate news, shares of Pfizer (PFE) are lower after the drug maker reported below consensus third-quarter earnings and lowered the top end of its 2016 guidance. Coach (COH) fiscal first-quarter earnings met Wall Street estimates on below-consensus revenue, while the company maintained its full year guidance.
US purchasing managers increased their spending to the highest level in a year and output climbed for a fifth
consecutive month. The IHS Markit Purchasing Managers Index rose 1.9 points to a reading of 53.4 in October, up from 51.5 in September,the highest since November 2015. The output component of the index climbed to 55.5 from a 52.5, the highest since last October. New orders improved to the strongest in a year.
China’s purchasing manager’s manufacturing and non-manufacturing indices both beat expectations in October with respective readings of 51.2 and 54.0, while the Caixin manufacturing index rose to 51.2 last month from 50.1.
The Dow Jones Industrial Average fell 0.2%, the Standard & Poor’s 500 lost 0.1% and the Nasdaq Composite declined 0.2%.
Globally, the FTSE lost 0.1%, the Nikkei dropped 0.4% and the Shanghai Composite added 0.7%.