You are here

US: Stocks dip at open


[NEW YORK] AIG rejected activist investor Carl Icahn's idea to split up the insurer Tuesday as the broader US stock market opened lower.

Five minutes into trade, the Dow Jones Industrial Average was at 17,798.96, down 29.80 points (0.17 per cent).

The broad-based S&P 500 shed 6.52 (0.31 per cent) at 2,097.53, while the tech-rich Nasdaq Composite Index fell 15.73 (0.31 per cent) to 5,111.42.

AIG chief executive Peter Hancock said Icahn's proposal to break up the insurer into three companies "did not make financial sense." AIG fell 4.1 per cent after reporting a third-quarter loss of US$231 million. analyst Patrick O'Hare said the broader market is "overbought and overdue for a period of consolidation" after huge gains in October.