US stocks lower on eurozone caution, US outlook

NEW YORK: US stocks opened lower Tuesday, following drops in European markets as caution over whether a comprehensive deal on ending the eurozone crisis could be stuck by the promised Wednesday deadline.

The Dow Jones Industrial Average was down 128.97 (1.08 percent) to 11,784.65 in the first 10 minutes of trade.

The broader S&P 500 fell 16.44 (1.31 percent) to 1,237.75, while the tech-heavy Nasdaq Composite gave up 36.70 (1.36 percent) to 2,662.74.

There were signs that Europe's leaders were still struggling to reach agreement with banks over reducing Greece's debt burden and protecting Italy from any fallout if efforts stumble.

French Prime Minister Francois Fillon warned that if Wednesday's summit fails, "this could tip the European continent into unknown territory."

Meanwhile, said Jim Cunningham at Schaeffer's Investment Research, "on Wall Street, traders are responding to lackluster earnings guidance from the likes of tech giant Texas Instruments and entertainment guru Netflix, which are both set to start the day in negative territory."

Copyright AFP (Agence France-Presse), 2011