Tuesday, November 3, 2015

US stocks open mostly lower as earnings disappoint

FILE - This Oct. 4, 2014, file photo, shows the facade of the New York Stock Exchange. Asian stocks rose Tuesday, Nov. 3, 2015, after Australia's central bank left the door ajar to lower interest rates, underlining a trend for the region's policymakers to keep stimulus taps open while a rate hike looms in the United States. European markets were lackluster. (AP Photo/Richard Drew, File)

NEW YORK (AP) — U.S. stocks were mostly lower in early trading Tuesday as investors worked through a raft of corporate news and prepared for key U.S. economic data later this week.

KEEPING SCORE: The Standard & Poor’s 500 index lost five points, or 0.2 percent, to 2,098.89 as of 10:07 a.m. Eastern time. The Dow Jones industrial average edged up six points, less than 0.1 percent, to 17,838. The Nasdaq composite lost 15 points, or 0.3 percent, to 5,112.

MERGER CRUSH SAGA: King Digital Entertainment, the publisher of the Candy Crush Saga video game, jumped $2.21, or 14 percent, to $17.75 after Activision Blizzard announced it would buy the company for $5.9 billion. Activision Blizzard fell 80 cents, or 2 percent, to $33.80.

BAD HARVEST: Archer Daniels Midland fell $4.13, or 9 percent, to $42.17. The ethanol and agricultural products maker posted third quarter earnings that badly missed analysts’ expectations. Archer Daniels has struggled in the wake of lower interest in corn ethanol as a fuel and a strong U.S. dollar, which makes U.S. agricultural products more expensive to export.

US IN FOCUS: It’s a busy week for U.S. economic indicators. The October jobs report comes out on Friday. If the survey does come in strong, it would raise market expectations that the Fed will raise interest rates at their December meeting. Economists surveyed by FactSet expect U.S. employers added 185,000 jobs in October and that the unemployment rate remained steady at 5.1 percent.

NEED INSURANCE: American International Group fell $2.96, or 5 percent, to $60.79. The financial and insurance conglomerate posted a loss in the third quarter, blaming market volatility earlier this year. The company also pushed back on activist investors who want to break up the company.

VW’S WOES PERSIST: Volkswagen slid after U.S. environmental officials said the company equipped more models than previously thought with software that let the cars cheat on diesel emissions tests. The company’s shares fell 3 percent in European trading.

ENERGY: Benchmark U.S. crude added 66 cents to $46.80 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 74 cents to $49.54 a barrel in London.

BONDS, CURRENCIES: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.20 percent from 2.17 percent late Monday. The euro fell to $1.0944 from $1.1013 and the dollar rose to 121.14 yen from 120.76 yen.

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