Stocks Open Lower on Mixed Earnings

U.S. stocks opened lower on Tuesday, as investors reacted to mixed earnings and awaited service- sector and factory-orders data. The Dow Jones Industrial Average lately dropped 90.63 points, or 0.55%, to 16,478.65. The S&P 500 was down 10.65 points, or 0.55%, to 1,928.34. The Nasdaq Composite lost 28.51 points, or 0.65%, to 4,355.38.

Target has lowered its second-quarter forecast because of costs related to a massive data breach and the repayment of debt. Target said its second quarter results are expected to include $148 million in gross expenses related to the data breach, which will be offset by $38 million in insurance. It also paid $1 billion to retire $725 million in debt.The company now expects to earn around 78 cents per share for the quarter.

Office Depot Inc.(ODP) posted in-line earnings and raised its outlook for the full year. The office equipment retailer said it had a net loss of $190 million, or 36 cents a share, in the second quarter, after a loss of $64 million, or 23 cents a share, in the year-earlier period. Sales rose to $3.8 billion from $2.4 billion.

With Apple Inc.’s repurchases staking a claim as the most profitable on record, buybacks remain one of America’s most popular antidotes to bears.The iPhone maker is up 25 percent since it spent $18 billion on its own shares between January and March and rallied 32 percent after a $16 billion buyback in 2013.

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