US open: Stocks struggle for direction after raft of economic data

US stocks struggled for direction early on Monday, as investors digested a raft of economic data.

Just after 1500 BST the Dow Jones Industrial Average was down 42 points to 17,647.67, while while the S&P 500 fell less than two points and the Nasdaq climbed nine points.

Asian stocks decline

Asian stocks started the week in the red following negative data from China, where the Shanghai Composite Index fell 1.11% and Hong Kong's Hang Seng was down 0.91%.

China's manufacturing purchasing managers index (PMI) declined in July to 47.8 from 48.2 one month earlier, adding to concerns of a deepening slowdown.

Elsewhere, European stocks reversed early losses to edge higher as well-received earnings and economic data helped to offset a downbeat session in Asia, although the Greek stock market fell heavily.

The dollar was broadly flat against the euro and the yen but gained 0.16%, while gold futures slid 0.23% to $1,092.60.

Oil prices tumbled, with West Texas Intermediate losing 2.46% to $45.99 a barrel, while Brent dropped 3.41% to $50.49 a barrel.

Monday data

US personal consumption expenditure rose 1.3% year-on-year in June, above expectations for a 1.2% increase. Personal spending rose 0.2%, as expected, while personal income climbed 0.4% to beat forecasts for a 0.3% gain.

"We expect core PCE to continue rising from here, albeit at a moderate pace," Barclays' analysts said in a note.

"As core prices rise further and the drag from sharply declining energy prices wanes, we expect headline PCE also to move higher, reaching 1.1% by the end of 2015 from the current 0.3% reading."

The US ISM manufacturing index fell to 52.7 in July from 53.5 in June, against consensus expectations for a broadly stable reading.

"Overall, we view the details of the July ISM as a bit more positive than the headline index would suggest, but expect domestic manufacturing to remain sluggish in the third quarter," Barclays' analysts said in a note.

Meanwhile, the final US July Markit PMI rose slightly to 53.8 in July from 53.6 in June but was unchanged from the flash estimate.

Mixed earnings

Consumer and professional products producer Clorox declined 0.20% despite posting better-than-expected fourth quarter results, while Tyson Foods plummeted 9.20% after the meatpacking group's profit fell short of expectations and the group cut its full-year outlook.

There was more positive news for Frontier Communications, which jumped 6.94% after its quarterly results beat expectations.

Fiat Chrysler rose 2.34% after reporting a 6.2% increase in auto sales in July, while insurance group PartnerRe climbed 1.92% after accepting a merger offer worth $6.9 from Italian investment group Exor.