US open: Stocks fall as US services activity slows
US stocks slumped at Tuesday's open after data showed an easing back in US services activity.
Markit's purchasing managers index (PMI) on US services showed continued but slowing growth, with the index falling to 60.8 in July from 61 a month earlier, in line with expectations. A reading above 50 signals expansion.
Separately, ISM will release its non-manufacturing composite for July which is expected to show an increase in July.
Earlier on, data from HSBC/Markit PMI on China's services sector showed that growth ground to a halt in July. The China services PMI dropped sharply from 53.1 to just 50 in July; this was the lowest reading since records began in November 2005 and meant that the non-manufacturing sector neither grew nor contracted last month.
Another report on US factory orders may show a 0.6% rise in June after a fall of 0.5% a month earlier, according to forecasts.
Gannett up, Target down
Gannett Co. jumped after the owner of USA Today said it will split into two companies, separating its publishing unit from its broadcasting and digital businesses.
Target retreated after cutting its estimate for second quarter profit on an expense from a December data breach.
Motorola Solutions slumped after quarterly earnings missed estimates.
Coach rallied after the luxury handbag maker said it made a profit in the fourth quarter that exceeded the analysts' projections.
The US 10-year yield rose two basis points to 2.50%.
West Texas Intermediate crude futures fell 0.19% to $98.10 per barrel, according to the ICE.
RD