US open: Retailers continue to drag amid backdrop of weaker dollar

Retailers' shares are weighing on US stock benchmarks again, while accusations that the president might have shared confidential information with visiting Russian diplomats takes its toll on the dollar.

As of 1606 BST the Dow Jones Industrials was down by 0.07% to 20,967.66 and the S&P 500 by 0.12% to 2,399.47, although the Nasdaq Composite was eking out a small gain of 0.04% to trade at 6,151.95.

Overnight, The Washington Post reported Donald Trump had breached the trust of one of its allies by revealing information regarding a possible Isis plot to target airliners by using laptop computers.

On Monday evening, Trump had received Russian foreign policy czar Sergei Lavrov and the country's ambassador in the US in the Oval Office.

The report was quickly denied by national security adviser HR McMaster, who said no sources nor the methods used to gather the intelligence had been discussed.

Earlier on Tuesday, Senate majority leader Mitch McConnell told a reporter he'd prefer "less drama" from the White House.

Some market commentary attributed the 0.7% drop in the US dollar index towards a six-month low of 98.22 to the furore raging around Monday night's events in the Oval Office.

IG analyst Chris Beauchamp said: "US markets have remained determinedly resilient in the face of the scandals emerging from Washington, but with a fresh crisis emerging overnight regarding intelligence revelations, you do have to wonder how long stocks can maintain their equanimity. The real catalyst would be a sign that Republican lawmakers are becoming fed up with the turbulent president; until this happens the Trump bandwagon will continue to rumble along in its entertaining yet disturbing fashion."

Ecomomic data was somewhat mixed on Tuesday, with figures from the Federal Reserve showing that increased auto output and steady growth in mining sending US industrial production higher by 1.0% month-on-month in April, dwarfing forecasts for a rise of 0.4%.

Housing starts and permits on the other hand undershot economists' forecasts for the same month, but analysts put the weak data down to the impact from weather-related factors and a shift in the timing of Easter.

On the corporate front, Dick's Sporting Goods was down by 12.53% after reporting that first quarter like-for-like sales grew by 2.4% (consensus: 3.5%).

From a sector standpoint, the biggest losses were to be seen in the following industrial groups: Clothing and Accessories (-1.82%), Footwear (-1.80%) and Retail REITs (-1.44%).

Stock in another retailer, TJX Cos. was also on the backfoot after the company posted sales of $7.78bn for the latest three-month stretch, undershooting analysts' forecasts calling for $7.88bn.

Ford Motor was also moving lower on the back of reports that it is planning to cut 10% of its global workforce in order to bolster profits.

Elsewhere, Home Depot was a bright spot after the DIY specialist nudged its guidance for full-year earnings per share higher on the back of a robust outlook for the housing market.