Stocks slide on economic weakness

U.S. markets take a hit after a report on services activity shows signs of a recession.

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NEW YORK (CNNMoney.com) -- Stocks skidded at Tuesday's open after a report on nonmanufacturing activity pointed to a recession.

The Dow Jones industrial average fell about 1.4%. The Nasdaq composite index lost about 1.5%. The Standard & Poor's 500 index was 1.7% lower.

The Institute of Supply Management's services activity index plunged in January to 41.9 from 54.4, a reading that signals contraction in the sector and hints at a recessionary economy.

Among stocks in the news at the open:

News Corp.: Media company News Corp. (NWS, Fortune 500) posted results late Monday about in line with analysts' estimates and said it is not considering a bid for Internet giant Yahoo (YHOO, Fortune 500).

Yahoo: Shares were downgraded to "hold" from "buy" late Monday by Soleil and early Tuesday by Bank of America.

Boston Scientific: Medical device maker Boston Scientific (BSX, Fortune 500) said it swung to a net loss of $458 million in the latest quarter, but earnings excluding items beat forecasts and the company raised first-quarter guidance.

Walt Disney: Media company Walt Disney (DIS, Fortune 500) is due to report quarterly results after the market close.

Apple: Computer and electronics maker Apple (AAPL, Fortune 500)added new models of the iPhone and iPod touch Tuesday that double the memory capacity of earlier models. To top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.