U.S. stocks lower ahead of ISM report; Dow Jones down 0.30%

Investing.com - U.S. stocks were lower on Monday, as investors awaited the release of U.S. manufacturing activity data while sentiment remained vulnerable after a weak employment report from the euro zone.

During early U.S. trade, the Dow Jones Industrial Average dropped 0.30%, the S&P 500 index edged down 0.04%, while the Nasdaq Composite index eased 0.02%.

Investor confidence weakened after official data showed that the unemployment rate in the euro zone ticked up to a record high of 10.8% in February from 10.7% the previous month, broadly in line with expectations.

Market sentiment found support earlier as concerns over Chinese economic growth eased after data showed that the manufacturing activity in China rose more-than-expected in March.

In addition, euro zone finance ministers agreed on Friday to strengthen the bloc’s debt firewall, but fears remained over whether the measures would be enough to prevent contagion to Spain and Italy.

In the financial sector, shares in Goldman Sachs declined 0.66% as the U.S. lender was reported to be mulling setting up a USD3 billion fund to provide loans to property investors that would target riskier, but higher-yielding investments.

Meanwhile, JP Morgan dropped 0.74%, Bank of America slid 0.73% and Citigroup fell 0.47%.

Shares in AVI BioPharma sunk 22.19% after a small trial of the company’s experimental muscular dystrophy drug met its goal of increasing levels of a key protein, but did not demonstrate that the drug had an impact on walking ability or other clinical endpoints.

Elsewhere, Chevron also saw shares retreat 0.15% after a Brazilian prosecutor requested an injunction this week barring U.S. oil company and drill-rig operator Transocean from operating in Brazil as part of a record USD10.9 billion environmental lawsuit over a November oil spill. Shares in Transocean were up 0.51%.

In earnings, Groupon plunged 11.43% after the daily-deals site reduced its revenue for the fourth quarter due to customer returns.

On the upside, Apple shares added 0.92% after Foxconn, one of the company’s suppliers, pledged on Sunday to keep increasing salaries at its Chinese factories and cutting the hours of work.

Express Scripts also gained 4.63% as the pharmacy benefit management service provider said it completed its USD29.1 billion purchase of Medco Health.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 tumbled 0.64%, France’s CAC 40 dropped 0.34%, Germany's DAX edged down 0.03%, while Britain's FTSE 100 rose 0.32%.

During the Asian trading session, Hong Kong's Hang Seng Index fell 0.6%, while Japan’s Nikkei 225 Index eased up 0.2%.

Later in the day, the U.S. was to release a report by the Institute of Supply Management on manufacturing activity.