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New York - Brewer AB InBev's massive $121bn takeover of rival SABMiller and Alibaba's record "Singles Day" sales failed to hold up US shares in early trade on Wednesday.
Investors remained cautious after a six-week winning streak and signs of weakness elsewhere in the corporate sector, underscored by a dismal third-quarter report by department store Macy's that sent its shares tumbling 12.8%.
About 45 minutes into trade, the Dow Jones Industrial Average was down 36.25 points (0.20%) at 17 721.96.
The broad-based S&P 500 slipped 3.51 points (0.17%) to 2 078.21, while the tech-rich Nasdaq Composite lost 10.68 (0.21%) at 5 072.56.
The huge merger of top beer companies pushed Anheuser-Busch InBev's shares, traded on the New York Stock Exchange, up 0.9%. SABMiller, listed in London, rose 2%, while Molson Coors Brewing, which will take full control of MillerCoors for $12bn as part of the larger deal, fell 0.8%.
Shares of department store chain Macy's plunged after it reported a dismal third quarter with revenues 5.2% lower, and cut its full-year earnings forecast by 10%.
"Spending by domestic customers remained tepid," the company said. There was also a downturn in purchases from international customers at its Macy's and Bloomingdale's stores in major tourism hubs.
China's top US-listed e-tailing companies Alibaba and JD.com tumbled despite a huge surge in turnover during the annual "Singles Day" marathon online sale.
Alibaba, the largest in the field, lost 3.1% at $78.85, a marked contrast to the $117 peak the shares hit in last year's sale.
Rival online retailer JD.com fell 3.5% despite reporting a doubling of transactions from last year during the event.
US internet retail giant Amazon meanwhile gained 1.5%.
