US open: Stocks mostly lower following worse-than-forecast data

US stocks were mostly lower following the release of worse-than-expected reports on US manufacturing and existing home sales.

Markit’s purchasing managers index (PMI) for manufacturing fell to 53.7 in January from 53.9 a month earlier. Analysts had forecast a reading of 54. A figure above 50 indicates expansion, while a level below 50 indicates contraction.

It follows a preliminary reading of the HSBC Chinese PMI for manufacturing activity which rose to 49.8 in January from a final reading of 49.6 in December, beating expectations of 49.5.

Meanwhile, existing home sales in the US increased 2.4% in December following a 6.1% drop a month earlier but missing analysts’ estimates for a 3% rise.

“After appearing to reverse its New Year slump this week, the US markets were dealt a blow as both flash manufacturing data and existing home sales both came in lower than expected,” said Connor Campbell, financial analyst at Spreadex.

“This has been the trend for 2015’s US data, and after the astonishing run the Dow Jones went on last year, investors have been thoroughly disappointed in the USA’s start to the New Year.”

Company-wise, UPS slumped after it reported a worse-than-forecast fourth quarter, citing the underperformance of the US market.

General Electrics edged up after reporting fourth-quarter earnings of $56 cents a share, narrowly beating consensus of $55 cents a share.

Honeywell International rose after reporting fourth-quarter profit of $975m. Excluding the pension mark-to-market adjustment, per-share earnings were $1.43, beating forecast of $1.42.

Starbucks gained 5% after reporting late on Thursday that first-quarter profit rose to $983.1m.

Capital One Financial fell over 1% after its fourth-quarter earnings missed Wall Street’s estimates.

Meanwhile oil futures rebounded in the wake of the death of Saudi Arabia’s King Abdullah. West Texas Intermediate crude increased 1.42% to $49.22 per barrel, according to the ICE.