Stocks Opened Slightly Lower before Manufacturing Data
U.S. stocks opened slightly lower on Tuesday ahead of data on American manufacturing and an upcoming meeting of European Central Bank policymakers. The Dow Jones Industrial Average lately lost 34.27 points to 13,056.57. The S&P 500 index retreated 1.65 points to 1,404.93. The Nasdaq Composite was off 3.72 points to 3,063.24.
In Europe, the focus will be on the European Central Bank President Mario Draghi Thursday, who is expected to announce details of a new bond-buying program intended to bring down the borrowing costs of countries such as Spain and Italy.
Moody’s ratings agency on Monday warned that it could downgrade the credit rating for the European Union as a whole, citing the mounting financial strain of the crisis on key countries like Germany and France. These countries are not only exposed to the higher costs of rescue measures for weaker countries but their industries are also suffering from weakening demand.
Chrysler’s U.S. sales rose 14 percent in August on strong demand for Ram pickup trucks. The company sold more than 25,000 Ram pickups, up 19 percent from a year earlier.
Campbell Soup’s net income rose 27 percent in its fiscal fourth quarter on strong sales of soup and other simple meals in the U.S. The results beat analysts’ expectations. The Camden, N.J., company earned $127 million, or 40 cents per share, for the period ended July 29. A year earlier it earned $100 million, or 31 cents per share. Revenue was basically flat at $1.61 billion, but that beat Wall Street’s $1.59 billion estimate.
Valeant Pharmaceuticals International Inc. has agreed to buy dermatology products maker Medicis Pharmaceutical Corp. for about $2.6 billion in cash in a deal to strengthen its position in skin treatments and care.