Stocks slip in early trade; American Eagle drops

Stocks slip in early trade on Wall Street; American Eagle drops after cutting profit forecast

Associated Press
Stocks slide on Wall Street; American Eagle drops
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FILE - In this Wednesday, July 31, 2013, file photo, Richard Newman, second left, works with fellow traders on the floor of the New York Stock Exchange. Stock futures bounced from earlier lows Tuesday, Aug. 6, 2013, after the U.S. reported record exports in June and new data was released showing that home prices are rising sharply. (AP Photo/Richard Drew)

NEW YORK (AP) -- Stocks are slipping in early trading on Wall Street Tuesday despite some positive news on the economy.

The Dow Jones industrial average fell 88 points, or 0.6 percent, to 15,523 after the first hour of trading.

IBM fell the most in the Dow following reports that the company would require some workers to take time off this month. Credit Suisse also cut its rating on the stock. IBM fell $4.09, or 2 percent, to $191.41.

The Standard & Poor's 500 index fell eight points, or 0.5 percent, to 1,698. All 10 industry sectors in the index fell.

The Nasdaq composite fell 18 points, or 0.5 percent, to 3,673.

Stocks fell even after the U.S. reported record exports in June and new data was released showing that home prices are rising sharply.

The stock market is still trading close to record highs. The Dow has risen for six weeks straight and the S&P 500 index closed above 1,700 points for the first time last week. The S&P is up 19 percent so far this year.

The yield on the 10-year Treasury note rose to 2.66 percent from 2.64 percent late Monday.

The dollar edged lower against the euro and the Japanese yen. Crude oil fell $1.19 to $105.42 a barrel and gold fell $19.20 to $1,283 an ounce.

Among other stocks making big moves:

— The Washington Post rose $31.40, or 5.5 percent, to $600.10 after the company announced late Monday that it would sell its namesake newspaper to Amazon founder Jeff Bezos.

— American Eagle slid $3.29, or 16.5 percent, to $16.68. The teen retailer slashed its earnings forecast in half late Monday, blaming weak sales. Cutting prices on clothing to lure shoppers shrunk profit margins.

— Molson Coors Brewing rose $2.11, or 4.2 percent, to $52.20. The company reported better earnings and revenue than analysts had expected, helped by sales in central Europe. Molson bought the Czech Republic-based brewer StarBev last year.

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