The markets opened lower as oil prices rebounded with the Dow falling 92 points to 12,533. Nasdaq lost 17 points to 2447. Meanwhile, investors waited for the latest report on existing home sales.
On the upside
American Axle and Manufacturing Holdings (NYSE: AXL) announced that workers approved a new contract including pay cuts and other concessions.InBev had no comment on a report on FT.com that the world's 2nd largest beverage company was working on a $46 billion bid for Anheuser Busch (NYSE: BUD). The stock rose in heavy trading.
Shares of Verigy (Nasdaq: VRGY) surged after the maker of test systems for semiconductor companies posted 2nd quarter profits that beat estimates.
On the downside
Standard & Poor's Ratings Service placed the major domestic airlines on CreditWatch due to record high jet fuel costs. Shares of American Airlines (NYSE: AMR) and Continental Airlines (NYSE: CAL) skidded.Steel manufacturer Nucor (NYSE: NUE) priced a public offering of 25 million shares at $74 each.
Pacific Sunwear of California (Nasdaq: PSUN) lowered its earnings guidance for the year.
In the broad market, declining issues outpaced advancers by a margin of more than 2 to 1 on both the NYSE and Nasdaq. The Russell 2000 which tracks small cap stocks lost 3 points to 729.
