U.S. Stocks Open Lower

By Dan Strumpf And Saumya Vaishampayan 

U.S. stocks slipped, weighed down by soft economic reports overseas and a batch of disappointing earnings reports.

The Dow Jones Industrial Average lost 57 points, or 0.3%, to 17893 in early trading. The S&P 500 index declined three points, or 0.2%, to 2105. The Nasdaq Composite Index lost nine points, or 0.2%, to 5026.

Data showing the eurozone's economy slowed in April weighed on European stocks. Germany's DAX fell 1.3% and France's CAC 40 lost 1%.

Chinese manufacturing activity fell to a one-year low, another sign of a slowdown in the world's second-largest economy. Asian stocks were mixed, with the Hang Seng Index losing 0.4% and the Shanghai Composite Index adding 0.4%.

The economic reports from Europe and China weighed on stocks in premarket trading and sent stocks sliding at the opening bell. At the same time, a mixed bag of corporate earnings reports failed to cheer investors.

"There isn't rip-roaring news this morning," this Michael Antonelli, equity sales trader at Robert W. Baird in Milwaukee. "We're still sitting near the highs, but there hasn't been enough to push it through yet. The earnings haven't been good enough."

While the Dow and S&P have minted several records in the last six years of a bull market, most recently on March 2, the Nasdaq has yet to breach its all-time high from the tech bubble. The tech-heavy index crossed 5000 for the first time since 2000 on March 2 and made another run at its record in late March. On Wednesday, the Nasdaq came within 14 points of the all-time record of 5048.62.

Meanwhile, a batch of mixed first-quarter earnings reports dampened investor sentiment.

Shares of General Motors Co. fell 3% after the auto maker reported a $945 million net profit in the first quarter, but its operating performance fell short of expectations.

Procter & Gamble Co. stock lost 1% after the consumer products maker said sales fell 7.6% in the March quarter due to the strong dollar.

Shares of Caterpillar Inc. gained 1.4% after the heavy equipment maker lifted its profit outlook for the year after reporting better-than-expected earnings in the first quarter. Shares rose 3.6% in premarket trading.

"We know it's not easy for U.S. corporations to increase earnings meaningfully at this point in the cycle," said Dan Morris, global investment strategist at TIAA-CREF, which manages $611 billion. Companies had been looking to sell more products in Europe, where the European Central Bank is attempting to kick-start growth, he said. "That was one of your bright spots, and that bright spot just got a little less bright," he added.

In economic news, U.S. jobless claims rose by 1,000 to 295,000 in the week ended April 18, the Labor Department said Thursday. Economists surveyed by The Wall Street Journal expected 290,000 claims. Later in the morning, readings on manufacturing in April and March home sales are due.

The yield on the 10-year Treasury note was at 1.975%, compared with 1.972% on Wednesday. Yields rise as prices fall. Gold futures added 0.2% to $1188.30 an ounce. Crude-oil futures rose 0.2% to $56.28 a barrel.

Write to Dan Strumpf at [e-mail] and Saumya Vaishampayan at [e-mail]

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