Opening Bell Report

The markets opened lower as blue chip companies struggled amid worries of higher wholesale prices which surged in July. The Dow tumbled 110 points to 11,368 while Nasdaq lost 22 points to 2394.

On the upside

WellCare Health Plans (NYSE: WCG) agreed to pay $35 million to the U.S. Attorney in Florida in what is being perceived by investors as the first step towards settling claims that the HMO overcharged for services due to accounting errors.

The airline sector remained aloft due to falling oil prices. Shares of UAL (Nasdaq: UAUA) and Southwest Airlines (NYSE: LUV) rose.

On the downside

The Home Depot (NYSE: HD) posted drops in 2nd quarter revenues and earnings as the nation's largest home improvement retailer struggled with a weak housing construction market.

Target (NYSE: TGT) posted higher revenues, but lower same-store sales. Meanwhile, profits fell as more customers failed to pay off their credit cards.

Staples (Nasdaq: SPLS) warned that its 2nd quarter results will be weaker than expected demand for office supplies in North America.

In the broad market, declining issues outpaced advancers by a margin of more than 3 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 8 points to 733.