US open: Equities struggle for direction amid disappointing earnings

US stocks moved in tight ranges early on Tuesday, as investors digested a raft of disappointing corporate earnings and some tepid factory orders data.

Shortly after 1500 GMT, the Dow Jones Industrial Average was 15 points to 17,842.52, while the S&P 500 and the Nasdaq were five and 13 points lower.

Earnings in focus

In company news, videogame maker Activision Blizzard climbed 0.33% after it unveiled plans to buy Candy Crush Saga maker King Digital Entertainment for $3.4bn in cash plus debt.

King Digital jumped 14%, while Molson Coors Brewing fell 0.52%% after the Financial Times reported the brewer was negotiations with joint venture partner SABMiller to acquire a majority stake in MillerCoors.

US-listed of oil giant Royal Dutch Shell climbed 0.82% after the group said it expects synergies from its planned $70bn takeover of BG Group to be 40% higher than originally estimated.

Among the companies that reported ahead of the bell, agricultural commodities manufacturer Archer Daniels Midland slumped 8.12% after its third quarterly profit and revenue fell more than expected, while cereal manufacturers Kelloggs dropped 4.22% after revealing its third-quarter earnings fell 8.5% amid costs related to its turnaround efforts and other one-time items.

Meanwhile CBS, Tesla Motors, Herbalife and Groupon will publish quarterly results after the close.

Factory orders decline unexpectedly

On the economic data front, according to figures released by the Commerce Department, factory orders declined 1% in September compared with analysts’ expectations for a 0.9% drop.

Meanwhile, August’s figures were downwardly revised to show a 2.1% increase compared with the 1.7% rise that was initially reported.

The main event in terms of economic data will come on Friday, when a report on non-farm payrolls for October could shed light on the timing of an interest rates hike, after the Federal Reserve hinted liftoff could come as early as next month.

“This divergence between the most recent economic data and the Fed’s view on the US economy has only served to deepen the uncertainty investors have about how the US central bank is seeing the US economy,” said CMC Markets’ chief market analyst Michael Hewson.

Most Asian equity markets moved into positive territory, as concerns over a slowdown in China abated slightly, while the Reserve Bank of Australia left interest rates unchanged overnight at 2%, which was largely in line with expectations.

Elsewhere, European stocks wavered, while oil prices rose, as West Texas Intermediate gained 1.87% to $47.02 a barrel, while Brent advanced 1.35% to $49.45 a barrel.

The dollar on the front foot against the main currencies, gaining 0.25%, 0.52% and 0.30% against the yen. the euro and the pound respectively, while gold futures slid 0.82% to $1,124.51.