Stocks Dipped at Open, Financial Led Losses

U.S. stocks opened lower on Tuesday as investors assessed data showing the U.S. trade deficit narrowed and digested deal news in the pharma industry and earnings results. The Dow Jones Industrial Average lately shed 80.01 points, or 0.48%, to 16,450.54. The S&P 500 was down 7.28 points, or 0.39%, to 1,877.38. The Nasdaq Composite fell 15.14 points, or 0.37%, at 4,122.92.

The U.S. trade deficit narrowed in March as exports rebounded to the second highest level on record, led by strong gains in sales of aircraft, autos and farm goods. The deficit declined to $40.4 billion, down 3.6 percent from a revised February imbalance of $41.9 billion, the Commerce Department reported Tuesday.

In the latest deal in the pharmaceutical space, Germany-based Bayer is acquiring Merck’s consumer care business, which includes well-known brands like Claritin, Afrin and Coppertone, for $14.2 billion.

Office Depot Inc. raised its outlook for operating profit in the current fiscal year to $160 million from $140 million. The company also said in its earnings report that it would close 400 stores in the U.S. by the end of 2016, which would begin bolstering earnings next year.

Chicago-based CBOE Holdings Inc. said Tuesday its first-quarter earnings beat expectations due to rising trading volume. CBOE reported higher-said net income rose to $48.5 million, or 56 cents per share, from $41.8 million, or 48 cents, a year earlier.