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U.S. stocks open lower on earnings

Xinhua, May 11, 2016 Adjust font size:

U.S. stocks opened lower on Wednesday, as investors assessed disappointing corporate earnings.

Shares of Disney dropped over 4 percent in early trading Wednesday, after the company reported worse-than-expected quarterly profit and revenues.

The Walt Disney Company reported Tuesday after the closing bell quarterly earnings of 2.1 billion U.S. dollars for its second fiscal quarter ended April 2, 2016. Diluted earnings per share for the quarter increased 6 percent to 1.30 dollars from 1.23 dollars in the prior year quarter.

Macy's posted Wednesday first quarter 2016 earnings of 37 cents per diluted share. Shares of Macy's plunged 10.76 percent in early Wednesday trading.

"We are seeing continued weakness in consumer spending levels for apparel and related categories. In particular, our sales trend relative to expectations meaningfully slowed beginning in mid-March, and first quarter results are below our original outlook," said Terry J. Lundgren, Macy's chairman and chief executive officer.

"Headwinds also are coming from a second consecutive year of double-digit spending reductions by international visitors in major tourist markets where Macy's and Bloomingdale's are key destinations, as well as a slowdown in some center core categories -- further intensifying the challenges associated with growing topline sales revenue," Lundgren added.

Shortly after the opening bell, the Dow Jones Industrial Average was down 66.91 points, or 0.37 percent, to 17,861.44. The S&P 500 shed 4.83 points, or 0.23 percent, to 2,079.56. The Nasdaq Composite Index fell 11.71 points, or 0.24 percent, to 4,798.17.

U.S. stocks posted solid gains Tuesday following a global equity rally, as investors cheered over a strong rebound in oil prices. Endi