US stock indexes open lower following weakness in Europe; AOL soars on deal news

U.S. stocks are opening lower following declines in European markets.

The Dow Jones industrial average lost 121 points, or 0.7 percent, to 17,986 as of 9:35 a.m. Eastern time Tuesday.

The Standard & Poor's 500 index gave up 13 points, or 0.6 percent, to 2,092. The Nasdaq composite declined 35 points, or 0.7 percent, to 4,956.

AOL soared 18 percent following news that the Internet company would be acquired by Verizon. Gap sank 4 percent after the retailer said the strong dollar was hurting its revenue.

European markets fell. Germany's DAX declined 1.6 percent. European bond prices fell, pushing yields higher.

Oil rose 35 cents to $59.60 a barrel in New York.

U.S. government bond prices inched lower. The yield on the 10-year Treasury note rose to 2.29 percent.