US open: Stocks edge lower amid mixed worldwide data

US stocks slid early on Wednesday, dragged lower by negative data out of China, as European Central Bank president Mario Draghi hinted the ECB might extend its stimulus programme.

Shortly after 1500 BST, the Dow Jones Industrial Average was down 29 points, while the S&P 500 and the Nasdaq were respectively one and three points lower.

China PMI disappoints

Caixin's preliminary Chinese manufacturing sector purchasing managers' index dipped to a reading of 47.0 for September - a 78-month low - down from 47.3 in August and compared with expectations for a reading of 47.5.

"Today’s weaker-than-expected PMI will add to mounting concerns over Chinese growth,” said Julian Evans-Pritchard, China economist at Capital Economics.

“That said, Caixin’s manufacturing PMI has not provided a particularly good reading of the health of the broader economy in recent months and so it is still too early to tell whether or not the Chinese economy has stumbled in September.”

However, there was more positive news from the Eurozone, where the region's PMIs missed forecasts but indicated it remained on track to recover, pushing European stocks firmly higher.

Manufacturing growth subdued in September

The headline seasonally adjusted Markit Flash US Manufacturing Purchasing Managers’ Index (PMI) in September was unchanged from August’s 22-month low of 53.0, marking one of the slowest rates of expansion in the sector for the last two years.

Output rose at a slightly faster pace in September, but growth was offset by softer rates of new business and employment growth, which placed pressure on the headline reading.

“US manufacturing remained stuck in crawler gear in September, fighting an uphill battle against the stronger dollar, slumping demand in many export markets and reduced capital spending, especially in the energy sector," said Markit's chief economist Chris Williamson.

“The sluggish growth, weaker forward-looking indicators and downturn in price pressures all point to the Fed holding off with rate hikes until next year.

The Mortgage Bankers Association said its seasonally adjusted index of application activity, which covers home purchase demand and refinancing demand, surged 13.9% in the week ended 18 September.

The seasonally adjusted sub-index of refinancing applications jumped 18%, while the index of loan requests for home purchases, a key indicator of home sales, rose 9% to its highest level since June.

Investors will also hear from Atlanta Federal Reserve president Dennis Lockhart, a voting member of the FOMC, who is due to speak in Columbus, Georgia, at 1730 BST.

In company news, JC Penney climbed 0.85% after sources told the Wall Street Journal the group was looking for a new chief merchant to replace Elizabeth Sweney.

Insurance group MetLife fell 1.54%, after saying late on Tuesday it will raise its stock buyback programme to $1bn on top of the $1bn it bought back in the first three months of the year.

Disney slid 0.27% after USA Today's blog The Big Lead reported ESPN, one of the world’s biggest sports network and owned by Disney, is set to cut between 200 and 300 jobs over the coming months.

Elsewhere, the dollar gained 0.60% and 0.13% against the pound and the yen respectively but fell 0.36% against the euro, while gold futures gained 0.39% to $1,129.20.

Oil prices edged higher, as West Texas Intermediate climbed 0.19% to $46.45 a barrel, while Brent gained 0.36% to $49.26 a barrel.