NEW YORK - US STOCKS opened lower on Wednesday following market declines a day earlier as a government report revealed a mild contraction in July retail sales suggesting consumers have cut back on spending.

The Dow Jones Industrial Average was down 73.11 points (0.63 per cent) at 11,569.36 shortly after the market opened for trading.

The tech-heavy Nasdaq composite had dipped a lesser 1.31 points (0.05 per cent) to 2,429.30 while the broad-market Standard & Poor's 500 index was down 4.50 points (0.35 per cent) at 1,285.09.

The retail sales report is tracked closely by the markets because of its close ties to consumer spending which makes up some two-thirds of overall US economic growth.

The survey showed sales contracted 0.1 per cent last month, largely in the face of slumping car and truck sales.

'The July numbers were essentially in line with estimates, so the initial reaction to them was understandably muted. The report overall, though, is on the soft side,' said Mr Patrick O'Hare, an analyst at Briefing.com.

Traders said they would also be keeping a close eye on financial stocks and oil prices as the day's trading session geared up. -- AFP