US stocks sink as Manchester United debuts

US stockmarkets pared early half-percent opening losses in mid-morning trade Friday, as the debut shares of legendary British football club Manchester United held up above their $14 IPO price.

At 11:00 am (1500 GMT) the blue-chip Dow Jones Industrial Average was down 17.41 points (0.13 percent) at 13,147.78.

The broader S&P 500-stock index lost 1.95 (0.14 percent) to 1,400.85, while the tech-rich Nasdaq fell 5.52 points (0.18 percent) to 3,013.12.

Shares were generally lower amid profit-taking after the week's run-up, and hurt by poor Chinese economic data.

Beijing said exports and imports slowed for the second consecutive month in July, highlighting worsening conditions in the world's second-biggest economy.

Manchester United's shares held barely above their $14 initial public offering price, already cut Thursday from the expected $16-20 range amid doubts about the team's profit-generating potential and worries over IPOs generally since the flop of Facebook's May debut.

The shares were trading at $14.02, after having hit a peak of $14.20.

Trade was heavy in retailer JC Penney, its shares jumping 5.9 percent despite a poor quarterly report after its chief executive said that his radically revamped marketing strategy was boosting traffic and sales.

Goldman Sachs was down 0.4 percent despite news that the Securities and Exchange Commission and the Justice Department would not prosecute the investment bank on alleged abuses in the mortgage securities market.

On the Nasdaq, Facebook was up 3.3 percent and Research in Motion gained 5.5 percent on speculation that IBM was interested in one of its units.

Yahoo shares sank 5.3 percent amid investor disappointment on strategy changes by the company's new chief executive Marissa Mayer, including a possible decision not to hand over cash to shareholders if it sells off its shares in China's Alibaba.

Bond prices rose. The 10-year Treasury yield fell to 1.65 percent from 1.69 percent Thursday, while the 30-year dropped to 2.73 percent from 2.74 percent. Bond yields move inversely to prices.

Loading...