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NEW YORK - US SHARES opened weaker on Tuesday after a bleak outlook from delivery giant UPS and news that home prices are still falling darkened the mood as traders girded for a Federal Reserve meeting.
In the first exchanges, the Dow Jones Industrial Average fell 34.20 points (0.29 per cent) to 11,808.16 and the Nasdaq composite shed 6.51 points (0.27 per cent) to 2,379.23.
The Standard & Poor's 500 index lost 3.97 points (0.30 per cent) to 1,314.03.
Markets reacted to news that UPS, seen as a harbinger of economic activity, lowered its profit outlook due to soft economic conditions and high fuel prices.
Meanwhile the S&P Case Shiller home price index showed a year-to-year drop of 15.3 per cent in major cities, a sign of the ongoing woes in the housing sector.
Mr Bob Dickey at RBC Dain Rauscher said the difficult news is giving the market a test of its lows hit in March.
The latest action 'may be the start to the finish of the current pullback', he said.
'On this third test of the correction lows of the past six months, we would be looking for some type of climactic end, and although a weak opening is a scary pattern, it's also an important part of this bottoming process,' he added. -- AFP
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