US open: Stocks little changed after US data on housing starts and manufacturing

US stocks were little changed as reports showed housing starts fell and manufacturing growth slowed.

US housing starts dropped 1.6% last month following a 1.7% increase in October, missing forecasts for a 3.1% gain.

“Following the upward revision in housing starts for October, we are now tracking a stronger performance for residential investment,” said Barclays Research.

“However, after rounding, our fourth-quarter gross domestic product (GDP) tracking estimate is unchanged at 2.2%.”

Markit’s purchasing managers’ index (PMI) on manufacturing declined to 53.7 in December from 54.8 in November, compared to market estimates of 55.5. However, it remained above to 50 level that signals expansion.

The Federal Reserve is monitoring data to gauge the health of the economy ahead of the central bank’s monetary policy decision on Wednesday. The Fed is expected to maintain interest rates until 2015.

Weighing on stocks elsewhere, HSBC’s China manufacturing PMI declined from the break-even point of 50 in November to 49.5 in December, worse than the consensus forecast of 49.8.

Oil prices also continued to slide with West Texas Intermediate crude falling 3.2% to $54.15. The decline came as Iran has lowered its prices for oil shipments to Asia in January.

In company news, CVS Health gained after announcing it may repurchase $10bn in shares and increase its dividend pay-out.

Sony’s shares were higher amid reports it was approached over a potential $7bn financing offer from a group it believed was linked to princes from the Middle East.

10-year US Treasury yields dropped by six basis points to 2.05%.