US open: Stocks slide as oil prices fall

US stocks were in the red on Monday as oil prices fell and a report on existing home sales came in worse than expected.

At 1507 GMT, the Dow Jones Industrial Average dipped 0.13%, the S&P 500 slid 0.19% and the Nasdaq declined 0.10%.

A drop in oil prices was providing the biggest drag on equities after data from driller Baker Hughes showed US energy companies last week added one oil rig to 387 following three months of cuts. West Texas Intermediate crude was down 0.19% to $41.06 per barrel and Brent was down 0.12% to $41.15 per barrel at 1509 GMT.

“As ever the oil price is still the major element in any stock market movements - last week dips were furiously bought so we may see this play out once more,” said Chris Beauchamp, senior market analyst at IG.

There were few drivers on Monday with the only notable economic data release in the US being existing home sales figures. The National Association of Realtors said sales fell 7.1% in February to 5.08m units, the lowest since November.

Meanwhile, investors were digesting comments from Richmond Fed President Jeffrey Lacker who said in a speech that the latest US inflation figures were stronger than expected and expressed confidence that inflation will hit the Fed’s 2% target.

In corporate news, Starwood Hotels & Resorts gained after agreeing to a revised offer from Marriott International at $79.53 per share or $13.6bn, which exceeds the $13.2bn offered by a consortium led by China’s Anbang Insurance Group.

Sherwin-Williams Co. was on the back foot after saying on Sunday that it has reached a deal to buy paint industry rival Valspar Corp. for around $8.9bn. Valspar shares were sharply higher, however.

Technology giant Apple was higher ahead of unveiling a 4-inch iPhone and a new iPad at its Cupertino headquarters.

In currencies, the dollar was 0.59% higher against the pound, 0.09% higher versus the euro and up 0.15% versus the yen.