US stocks opened lower Tuesday as downbeat manufacturing data and corporate earnings offset hopes that bipartisan lawmakers in U.S. Senate are nearing a deal to reopen the government and raise the debt ceiling.
Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell on Monday both said they were "optimistic" about reaching an agreement this week after "constructive" talks over the past couple of days. And McConnell said they will get a result acceptable to both sides.
The Senate' s latest proposal would fund the government until Jan. 15 and extend the debt limit until February. It would also require broader fiscal negotiations to be concluded by Dec. 13. But it is questionable whether the proposal would pass Congress.
On the economic front, manufacturing activity in the New York region declined in October. The general business conditions index fell 5 points to 1.5, the slowest pace of improvement since May, according to the Federal Reserve Bank of New York' s monthly Empire State Manufacturing Survey.
On corporate earnings, Citigroup Inc. reported net income of 3.2 billion U.S. dollars for the third quarter of 2013, up from 468 million dollars in the same period last year, and its quarterly revenue was 17.9 billion dollars, up 30 percent year on year. However the bank' s earnings still missed analysts' estimate. Citigroup shares dropped 0.93 percent to trade at 49.14 dollars a share in early trading.
Shortly after the opening bell, the Dow Jones Industrial Average lost 51.57 points, or 0.34 percent, to 15,249.69 points. The S&P 500 dipped 5.78 points, or 0.34 percent, to 1,704.36 points. The Nasdaq Composite Index was down 5.00 points, or 0.13 percent, to 3,810.27 points.