US open: Shares lower on China data, potential banks downgrade

US stocks fell on Tuesday morning, following Asian and European indices lower, as weaker-than-expected export data from China worried investors about the health of the world’s second-largest economy.

Sentiment was also dampened by credit ratings agency Moody’s, which placed the ratings of six large US banks on review for a possible downgrade.

The Dow Jones Industrial Average was down 0.9% at 35,161.84, the S&P 500 fell 0.8% to 4,481.32, while the Nasdaq slipped 1% to 13,848.96.

Overnight, China's customs administration reported a 14.5% fall in exports for the month of July, following a 12.4% drop in June and worse than the consensus estimate of -13.2%. Imports also fell more than expected, by 12.4% after a 6.8% decline in June.

Elsewhere, a closely followed survey of US small businesses showed a slight improvement. The National Federation of Independent Business' optimism index edged up from 91.0 to 91.9 in July. Economists had pencilled in a reading of 90.6.

In other data, the US trade deficit fell by 4% in June to $65.5bn, with imports falling for a third month in a row. Meanwhile, US wholesale inventories declined by 0.5% in June.

Banking stocks take a hit, Eli Lilly jumps

Moody’s announced on Monday evening it had downgraded its debt ratings on 10 small to medium-sized US banks, and said it was reviewing the ratings of six larger institutions, including Bank of New York Melon, State Street, Northern Trust and US Bancorp.

"Many banks' second-quarter results showed growing profitability pressures that will reduce their ability to generate internal capital," the agency said. It pointed to a possible recession in early 2024, higher interest rates and a decline in asset quality, specifically within commercial real estate.

Eli Lilly’s share price surged over 16% after impressing with its quarterly earnings report. The pharma giant upped its annual profit guidance, helped by the strong performance from its new diabetes drug, Mounjaro, widely used for weight loss.

The stock was helped higher by news from sector rival Novo Nordisk, whose weight-loss drug Wegovy performed well in a clinical trial testing cardiovascular events in adults with obesity.

Delivery group UPS was trading lower after cutting its full-year margin forecasts following a challenging second quarter, with revenues dropping 11% year-on-year and profits slumping 27%.

Dow Jones - Risers

Amgen Inc. (AMGN) $259.29 2.51%
Merck & Co. Inc. (MRK) $106.63 0.51%
Verizon Communications Inc. (VZ) $32.58 0.14%
Apple Inc. (AAPL) $178.91 0.03%
Procter & Gamble Co. (PG) $156.96 0.03%
Dowdupont Inc. (DWDP) $0.00 0.00%
Boeing Co. (BA) $237.93 -0.13%
Walt Disney Co. (DIS) $86.62 -0.24%
Walmart Inc. (WMT) $159.96 -0.33%
Johnson & Johnson (JNJ) $172.48 -0.36%

Dow Jones - Fallers

Goldman Sachs Group Inc. (GS) $343.13 -3.50%
Intel Corp. (INTC) $34.25 -2.78%
JP Morgan Chase & Co. (JPM) $152.72 -2.58%
Walgreens Boots Alliance, Inc. (WBA) $29.13 -2.51%
3M Co. (MMM) $102.66 -2.44%
Nike Inc. (NKE) $107.81 -2.42%
American Express Co. (AXP) $163.72 -1.94%
Unitedhealth Group Inc. (UNH) $500.91 -1.92%
Dow Chemical Co. (DOW) $54.47 -1.88%
Salesforce.Com Inc. (CRM) $212.03 -1.87%

S&P 500 - Risers

Eli Lilly and Company (LLY) $532.69 17.31%
Perrigo Company plc (PRGO) $38.98 5.92%
Dish Network Corp. (DISH) $8.07 5.69%
Broadridge Fin Sol (BR) $174.84 5.23%
Zoetis Inc (ZTS) $186.45 3.19%
Amgen Inc. (AMGN) $259.29 2.51%
Biogen Inc (BIIB) $277.70 2.39%
Jacobs Solutions Inc. (J) $131.39 2.26%
Fluor Corp. (FLR) $34.80 1.64%
Hanesbrands Inc. (HBI) $5.29 1.54%

S&P 500 - Fallers

International Flavors & Fragrances Inc. (IFF) $65.39 -18.61%
Nektar Therapeutics (NKTR) $0.86 -15.39%
Sealed Air Corp. (SEE) $41.02 -6.94%
Keycorp (KEY) $11.45 -4.98%
Huntington Bancshares Inc. (HBAN) $11.68 -4.81%
Fifth Third Bancorp (FITB) $27.27 -4.58%
Citizens Financial Group, Inc. (CFG) $30.07 -4.57%
Comerica Inc. (CMA) $50.97 -4.44%
PNC Financial Services Group (PNC) $126.59 -4.39%
US Bancorp (USB) $38.38 -4.32%

Nasdaq 100 - Risers

Dish Network Corp. (DISH) $8.07 5.69%
Amgen Inc. (AMGN) $259.29 2.51%
Biogen Inc (BIIB) $277.70 2.39%
Biomarin Pharmaceutical Inc. (BMRN) $89.04 1.38%
Henry Schein Inc. (HSIC) $76.21 0.45%
T-Mobile Us, Inc. (TMUS) $137.06 0.30%
Incyte Corp. (INCY) $65.07 0.25%
Check Point Software Technologies Ltd. (CHKP) $126.98 0.18%
Vertex Pharmaceuticals Inc. (VRTX) $345.89 0.16%
Activision Blizzard Inc. (ATVI) $91.64 0.08%

Nasdaq 100 - Fallers

Qurate Retail Inc. (QRTEA) $0.88 -4.46%
JD.com, Inc. (JD) $37.63 -3.28%
Intuitive Surgical Inc. (ISRG) $299.59 -3.12%
Asml Holdings N.V. (ASML) $673.59 -2.86%
Analog Devices Inc. (ADI) $184.76 -2.81%
Sirius XM Holdings Inc (SIRI) $4.68 -2.81%
Skyworks Solutions Inc. (SWKS) $107.08 -2.80%
Gen Digital Inc. (GEN) $20.53 -2.79%
Intel Corp. (INTC) $34.25 -2.78%
Seagate Technology Plc (STX) $66.67 -2.69%