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Stocks Open Lower As Dow Jones Drops 115 Points: Home Depot Dives

Stocks opened in the red Thursday as losses by Home Depot (HD) and Nike (NKE) outweighed a strong move by Cisco Systems (CSCO) on the Dow Jones industrial average. Early gains by China-based stocks failed to counter retail-sector declines, as well as concerns stirred by Brexit-related news out of the U.K.

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Investors dug into third-quarter earnings from Dow stalwarts Walmart (WMT), and Cisco Systems (CSCO), while a third Dow stock, JPMorgan (JPM) rose on news of a $4 billion investment by Warren Buffet.

Royal Bank of Scotland (RBS), Lloyd's Banking Group (LYG) and Barclays (BCS) fell hard as Brexit-related resignations rattled the U.K. government. China's stock markets surged on trade war developments, and strong earnings posted by Tencent Holdings (TCEHY), NetEase (NTES) and Vipshop Holdings (VIPS).

Retailers took hard early hits after earnings news from Sorl Auto Parts (SORL), Dillard's (DDS) and JCPenney (JCP).

The Nasdaq Composite opened to a 0.2% decline. NetEase ran atop the Nasdaq 100, with Cisco close behind. U.K.-based Vodafone (VOD) suffered the Nasdaq's heaviest early loss.

The Dow Jones industrial average dropped 0.5%. Cisco led the Dow by a wide margin. Chevron (CVX) dropped 1% to the bottom of the Dow.

The S&P 500 fell 0.4%. Today's stock market sets out with the S&P 500 on the verge of a six-day losing streak. The Dow Jones industrial average has logged four straight declines. The Dow opens just a fraction below its 200-day moving average, while the S&P 500 is 2% below its 200-day line. The Nasdaq has dropped in four of the past five sessions, ending Wednesday 5% below its 200-day level. All three indexes remain well off the lows put in place on Oct. 29 — the Nasdaq holds the narrowest margin, finishing Wednesday 3.1% above its October low.

Dow Jones Stocks Mixed, China Names Climb; NetApp Slides

On the Dow Jones industrial average, Cisco jumped more than 4% after reporting strong earnings and revenue beats. Four straight declines left Cisco in a second test of support at its 200-day moving average, within a possible seven-week base pattern.

Dow Jones peer Walmart dipped nearly 1% in early trade, after its third-quarter earnings topped analyst targets, although a 1% revenue gain was short of expectations. Comparable sales rose 3.4%, better than expected. E-commerce sales surged 43%. Walmart stock is in buy range above a 100.31 buy point in a cup-with-handle base.

Blue chip JPMorgan advanced 0.5%. Regulatory filings showed Warren Buffet's Berkshire Hathaway (BRKB) expanding its share in the bank by $4 billion during the third quarter. The Dow Jones stock has been consolidating since March.

Earnings and trade war news drove China-based names in premarket trade: Vipshop punched up almost 13% and NetEase popped 10%.

On the downside, Sorl Auto Parts crumbled 16%, Dillard's unraveled 15% and JCPenney tanked 12% after reporting quarterly results.

NetApp (NTAP) dropped almost 11%, despite reporting solid fiscal second-quarter beats on both its revenue and earnings lines. Third-quarter earnings and revenue guidance met analyst views.  The stock has been working to climb the right side of an 11-week cup base.

China Stock Markets Surge, Europe Mixed;

China stock markets jumped Thursday on strong earnings news and after officials in Beijing reportedly submitted a list of trade proposals to the Trump administration. The news bolstered hopes for progress in the U.S./China trade standoff ahead of the scheduled meeting between President Trump and Chinese President Xi Jinping later this month. But CNN quoted an unnamed U.S. official who said the proposals offered nothing new, and that "the two sides remain at an impasse."

Hong Kong's Hang Seng Index surged 1.8%. The Shanghai Composite grabbed a 1.4% gain.

European markets weakened in afternoon trade after sudden resignations rattled the U.K. government. Two senior members of Prime Minister Theresa May's cabinet tendered resignations over issues with her just-completed Brexit package. The pound fell hard and investors dumped U.K.-related banking stocks, while European Union-based banks largely held their ground. London's FTSE 100 slumped 0.5%. The CAC-40 in Paris veered 1% lower. The DAX in Frankfurt traded with a 0.5% loss.

In U.S. trade, U.K.-based Royal Bank of Scotland swooned 10%, Lloyd's Banking Group dived 7% and Barclay's posted a 6% decline in premarket trade. U.K.-based wireless services provider Vodafone dumped 2.8%. Ireland's Shire fell 1.9%.

Nat Gas Backtracks, Oil Prices Edges Higher Ahead of Data

Natural gas prices toppled 10%, to $4.36 per million British thermal units, backtracking after Wednesday's 18% advance. Gas prices gained 48% from the start of November through Wednesday, as winter weather and power production issues spurred an unexpected drawdown of already thin gas stockpiles. Weekly gas storage data are due out from the Energy Information Administration at 10:30 a.m. ET.

Crude oil prices turned higher, with Brent crude jumping 0.9% and West Texas Intermediate adding 0.4% to above $56 a barrel. The American Petroleum Institute reported late Wednesday that U.S. oil inventories increased for a sixth straight week, with supplies up more than 8 million barrels vs. consensus projections for a 3 million-barrel rise. Official weekly storage data are due out at 11 a.m. ET from the Energy Information Administration.

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