Wall Street opens slightly lower as investors digest data

US consumer spending recorded its biggest increase in 4 months in April,monthly inflation rebounded

US stocks opened slightly lower on Tuesday after a three-day holiday weekend as oil prices fell and investors parsed a barrage of economic data for a reading on the health of the economy.

While stocks are trading at record levels, helped by strong first-quarter corporate earnings, investors are keeping a close eye on data as well as political developments in Washington.

US consumer spending recorded its biggest increase in four months in April and monthly inflation rebounded, pointing to firming domestic demand that could allow the Federal Reserve to raise interest rates next month.

The core PCE price index - the Fed's preferred inflation measure - increased 1.5 per cent in the 12 months through April. The central bank has a 2 per cent target.

The US Conference Board is likely to report that its consumer confidence index was little changed in May.

"We are expecting confidence to slip as the political turmoil in Washington weighs. Nonetheless, the confidence index is expected to stay within its upper range," Peter Cardillo, chief market economist at First Standard Financial, wrote in a note. "We look for a mixed session as the macro news is digested."

At 9:36 am ET (1336 GMT), the Dow Jones Industrial Average was down 26.65 points, or 0.13 per cent, at 21,053.63, the S&P 500 was down 3.27 points, or 0.13 per cent, at 2,412.55.

The Nasdaq Composite was up 2.33 points, or 0.04 per cent, at 6,212.53.

Nine of the 11 major S&P 500 sectors were lower, with the energy index's 0.82 per cent fall leading the decliners.

Oil prices were lower, pressured by concerns that production cuts by the world's big exporters may not be enough to drain a global glut that has depressed the market for almost three years.

CardConnect's shares jumped 11 per cent to $15.06 after First Data agreed to buy the payment processor for $750 million. First Data slipped 0.1 per cent.

Protagonist Therapeutics soared as much as 81 per cent to $14.85 after the drug developer signed a collaboration with Johnson & Johnson to develop a drug for inflammatory bowel disease. Johnson & Johnson fell 0.4 per cent.

Atwood Oceanics was up 21.2 per cent at $9.78 after offshore driller Ensco said it would buy its smaller rival in a deal valued at about $839 million. Ensco was down 6.5 per cent at $6.25.

Declining issues outnumbered advancers on the NYSE by 1,658 to 888. On the Nasdaq, 1,323 issues fell and 917 advanced.

The S&P 500 index showed 28 new 52-week highs and 11 new lows, while the Nasdaq recorded 82 new highs and 70 new lows.