* Purchasing Managers Index report due at 10:00 a.m. ET
* Cabela's soars after agreeing to be bought for $5.5 bln
* Indexes down: Dow 0.43 pct, S&P 0.34 pct, Nasdaq 0.16 pct
(Updates to open)
By Yashaswini Swamynathan
Oct 3 U.S. stocks started the fourth quarter on
a subdued note, weighed down by healthcare and consumer stocks.
The S&P 500 healthcare index fell 0.7 percent, the
most among the 10 major S&P indexes that were lower, due to
declines in Pfizer and Merck.
Consumer staples fell 0.59 percent, dragged down
by Procter & Gamble and PepsiCo.
The Purchasing Managers' Index (PMI) from the Institute of
Supply Management is expected to show that factory activity
expanded in September after having contracted in August.
Investors are also on the lookout for news from Deutsche
Bank, which is working to reach a settlement with U.S.
authorities who have demanded a fine of up to $14 billion from
the bank for mis-selling mortgage-backed securities.
While the bank's Frankfurt-listed stock was not
trading due to a public holiday, its U.S.-listed shares
were down 1.2 percent at $12.96 on Monday.
The travails of Germany's biggest lender has unsettled
investors who are now awaiting third-quarter corporate earnings
and the upcoming U.S. presidential election.
"It looks like a quiet start to the day and that's not
surprising," said Art Hogan, chief market strategist at
Wunderlich Equity Capital Markets in New York.
"It's a back-end loaded week with jobs numbers on Friday,
but if we get a positive read on ISM manufacturing, we could say
that August was a blip and that will be constructive for the
A report on monthly hiring activity on Friday will be
assessed by investors as it will play a big role in the Federal
Reserve's decision on raising interest rates this year.
At 9:37 a.m. ET (1337 GMT), the Dow Jones Industrial Average
was down 79.3 points, or 0.43 percent, at 18,228.85.
The S&P 500 was down 7.33 points, or 0.34 percent, at
2,160.94 and the Nasdaq Composite was down 8.31 points,
or 0.16 percent, at 5,303.69.
Tesla shares rose 2.3 percent to $208.82 after the
electric carmaker said third-quarter deliveries rose by 70
percent to 24,500 cars.
Janus Capital soared 17 percent after the asset
manager said it had agreed to an all-share $6 billion merger
with London-listed rival Henderson Global.
Cabela's surged 14.5 percent to $62.90 after the
company said it would be acquired by Bass Pro Shops in a deal
valued at about $5.5 billion.
Declining issues outnumbered advancing ones on the NYSE by
1,585 to 1,038. On the Nasdaq, 1,343 issues fell and 936
The S&P 500 index showed two new 52-week highs and three new
lows, while the Nasdaq recorded 23 new highs and seven new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by