US open: Stocks slide on falling oil prices, weaker-than-forecast data

US stocks declined, led by energy stocks which took a hit from falling oil prices.

Brent crude and West Texas Intermediate futures dropped as Goldman Sachs Group cut its oil price forecasts.

The broker now sees front month West Texas crude futures falling to $75 per barrel in the first quarter of 2015 and remaining at that level throughout the second half of the year.

In the second quarter of 2015 Brent futures are seen dropping to $80 per barrel and West Texas crude futures to $70 per barrel.

Meanwhile, Markit’s purchasing managers index (PMI) for services fell to 57.4 in October from 58.9 a month earlier. Analysts had predicted a reading of 57.8. However, a level above 50 signals expansion.

Another report showed pending home sales rose 1% year-on-year in September after falling 4.1% in August. It missed forecasts for a 2.2% increase.

In corporate news, Italian lender Monte dei Paschi was making waves that were being felt all the way over on the other side of the Pond. Its shares cratered after news the bank must replenish €2.1bn in capital within nine months to meet European Central Bank requirements.

Citizens Financial Group slumped despite reporting a rise in third-quarter profit as the bank set aside less money for bad loans.

The yield on US 10-year Treasuries fell two basis points to 2.25%.