Investing.com - U.S. stocks opened lower on Monday, weighed by Friday’s weak employment data and as investors remained cautious ahead of a meeting of euro zone finance ministers later in the day, while second quarter earnings season was about to begin.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.45%, the S&P 500 index declined 0.36% while the Nasdaq Composite index fell 0.23%.
Sentiment remained fragile after official data on Friday showed that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.
Meanwhile, European Central Bank President Mario Draghi reiterated on Monday comments made at a press conference last week, saying that economic indicators for the second quarter point to weakening growth in the euro zone.
The comments came as the yield on Spain’s 10-year government bonds climbed to 7.11% earlier, above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later Monday to discuss plans to help the region’s struggling banking system.
Energy stocks were broadly lower as shares in oil and gas major Chevron fell 0.67% and Exxon Mobil dropped 0.71%, while Chesapeake Energy saw shares decline 0.45%.
U.S. aluminum producer Alcoa also tumbled 1.20%, as the company was preparing to kick off the earnings season, by publishing second quarter results after the closing bell.
On the upside, aircraft company Boeing jumped 1.52%, at the open of Europe's Farnborough air show, in the U.K., with orders from at least two leasing companies. The deals were believed to help the U.S. plane maker consolidate its lead in orders over Airbus this year.
Elsewhere, Apple shares advanced 0.72%, although Samsung Electronics won an intellectual property ruling against Apple, as a U.K. judge declared earlier that the Galaxy tablet isn’t “cool” enough to be confused with the design for the iPad.
In corporate news, Celgene added 0.29% amid reports it was one of two companies discussing whether to bid for Human Genome Sciences, which is seeking an alternative to a hostile offer by British drug maker GlaxoSmithKline.
WellPoint also gained 4.17% after announcing plans to buy rival Amerigroup for about USD4.46 billion.
Meanwhile, Campbell Soup saw shares rise 0.21% after saying it will acquire Bolthouse Farms for USD1.55 billion in cash, in an attempt for the packaged food and beverage giant to make their products healthier.
Other stocks in focus included PepsiCo, down 0.21%, as it was expected to start selling yogurt this month, in the Northeast and mid-Atlantic states, in a bid to curb its reliance on soda sales.
Across the Atlantic, European stock markets were lower. The EURO STOXX 50 eased 0.08%, France’s CAC 40 fell 0.13%, Germany's DAX declined 0.18%, while Britain's FTSE 100 retreated 0.47%.
During the Asian trading session, Hong Kong's Hang Seng Index plunged 1.7%, while Japan’s Nikkei 225 Index tumbled 1.4%.
Also Monday, government data showed that consumer price inflation accelerated at the slowest rate since January 2010 in June, sparking fresh concerns over a deeper-than-expected slowdown in China.
Premier Wen Jiabao said over the weekend that China’s economy faces “relatively large” downward pressure in the near-term.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.45%, the S&P 500 index declined 0.36% while the Nasdaq Composite index fell 0.23%.
Sentiment remained fragile after official data on Friday showed that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.
Meanwhile, European Central Bank President Mario Draghi reiterated on Monday comments made at a press conference last week, saying that economic indicators for the second quarter point to weakening growth in the euro zone.
The comments came as the yield on Spain’s 10-year government bonds climbed to 7.11% earlier, above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later Monday to discuss plans to help the region’s struggling banking system.
Energy stocks were broadly lower as shares in oil and gas major Chevron fell 0.67% and Exxon Mobil dropped 0.71%, while Chesapeake Energy saw shares decline 0.45%.
U.S. aluminum producer Alcoa also tumbled 1.20%, as the company was preparing to kick off the earnings season, by publishing second quarter results after the closing bell.
On the upside, aircraft company Boeing jumped 1.52%, at the open of Europe's Farnborough air show, in the U.K., with orders from at least two leasing companies. The deals were believed to help the U.S. plane maker consolidate its lead in orders over Airbus this year.
Elsewhere, Apple shares advanced 0.72%, although Samsung Electronics won an intellectual property ruling against Apple, as a U.K. judge declared earlier that the Galaxy tablet isn’t “cool” enough to be confused with the design for the iPad.
In corporate news, Celgene added 0.29% amid reports it was one of two companies discussing whether to bid for Human Genome Sciences, which is seeking an alternative to a hostile offer by British drug maker GlaxoSmithKline.
WellPoint also gained 4.17% after announcing plans to buy rival Amerigroup for about USD4.46 billion.
Meanwhile, Campbell Soup saw shares rise 0.21% after saying it will acquire Bolthouse Farms for USD1.55 billion in cash, in an attempt for the packaged food and beverage giant to make their products healthier.
Other stocks in focus included PepsiCo, down 0.21%, as it was expected to start selling yogurt this month, in the Northeast and mid-Atlantic states, in a bid to curb its reliance on soda sales.
Across the Atlantic, European stock markets were lower. The EURO STOXX 50 eased 0.08%, France’s CAC 40 fell 0.13%, Germany's DAX declined 0.18%, while Britain's FTSE 100 retreated 0.47%.
During the Asian trading session, Hong Kong's Hang Seng Index plunged 1.7%, while Japan’s Nikkei 225 Index tumbled 1.4%.
Also Monday, government data showed that consumer price inflation accelerated at the slowest rate since January 2010 in June, sparking fresh concerns over a deeper-than-expected slowdown in China.
Premier Wen Jiabao said over the weekend that China’s economy faces “relatively large” downward pressure in the near-term.