NEW YORK: US stocks dropped on opening Thursday in the wake of falls in European and Asian markets as the turmoil in Libya kept investors on edge.
At 1500 GMT the Dow Jones Industrial Average was off 39.85 points (0.33 percent) at 12,172.94, while the broader S&P 500 lost 2.64 (0.20 percent) at 1,312.80. The Nasdaq Composite index pared 9.12 (0.33 percent) to 2,747.30.
Blue chips remained fairly steady in early trading.
"Corporate profits are acting generally as a counterweight to the unrest in North Africa and the Middle East," with the exception of Dow member Hewlett-Packard Co., said Kimberly DuBord of Briefing.com.
The US computer giant HP reported Tuesday after the market closed that its net profit climbed to 16 percent to $2.6 billion, falling short of Wall Street forecasts.
HP shares fell 10.3 percent in heavy early trade to $43.26.
Spotty news of violence in Tripoli and elsewhere in Libya Thursday after leader Moamer Kadhafi's menacing speech against opponents the day sent oil to two-year highs, and Asian and European markets were generally lower.
Dubord said US investors were more focused on domestic fundamentals.
"While the unrest continues to raise the risk of regional contagion, it is unlikely these events will destabilize the US economic recovery," said Dubord.
"Global risks are on the rise, but the safety trade is not as robust as one would think considering the events unfolding in Libya."
The bond market moved sideways after the Libyan turmoil gave US Treasuries as boost Wednesday. The yield on the 10 year Treasury was at 3.463 percent compared to 3.461 percent late Wednesday, while the 30-year was at 4.579 percent, down from 4.605 percent.
Bond prices and yields move in opposite directions.
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