US open: Stocks fall as oil prices decline

US stocks declined on Wednesday after oil prices fell and earnings from Coca-Cola disappointed.

At 1542 BST, the Dow Jones Industrial Average fell 0.11%, the S&P 500 dropped 0.19% and the Nasdaq shed 0.13%.

Oil prices were under the cosh as US government data showed weekly crude inventories rose by 2.1m barrels to 538.6m last week. Crude oil refinery inputs averaged 16.1m barrels per day, up 163,000 barrels per day more than the previous week’s average.

Meanwhile, oversupply worries resumed after Kuwait oil workers ended a three-day strike which had disrupted production.

“Yesterday’s surge in oil prices was ultimately down to a weaker dollar and misplaced hopes that the Kuwaiti strike might continue and thus put a dent in the present supply glut so little surprise this morning that oil is down…on news that Kuwait workers ended their strike,” said Brenda Kelly, head of analysts at London Capital Group.

“The weakening dollar is still the main story here. Given that the dollar index is approaching pivotal levels on foot of weaker US macro data, any additional bad news might be the nail in the coffin for Fed hawks. Various Fed members have attempted to berate present market expectations as wide off the mark – the market is still dubious, with few expecting any further tightening until the second half of 2016.”

West Texas Intermediate crude fell 1.2% to $41.94 per barrel and Brent dropped 0.98% to $43.60 per barrel at 1553 BST.

In corporate earnings, Coca-Cola slumped after the beverage giant posted a fall in first quarter earnings as it took a hit from a stronger dollar and charges related to refranchising.

Shares in Intel Corp. climbed after the chipmaker reported a 3% increase in first quarter earnings to $2.05bn that beat expectations. The company also announcedthat it plans to cut 12,000 jobs.

First quarter results from American Express are due after the close.

In economic data, sales of existing US homes rose 5.1% in March to a seasonally-adjusted annual rate of 5.33m from a downwardly-revised 5.07m the previous month, according to data from the National Association of Realtors.

The reading came in a touch higher than the 5.30m economists had been expecting.

In currencies, the dollar fell 0.01% against the pound, rose 0.24% against the euro and was flat versus the yen.