Jobless claims dropped last week but expansion in the nation's services sector slowed in June. The markets opened flat with the Dow adding 6 points to 14,939 while Nasdaq eased a point to 3432.

On the upside

Noodles & Co. (Nasdaq: NDLS) rose again after Mad Money's Jim Cramer rated the fast casual chain a Buy yesterday.

OCZ Technology (Nasdaq: OCZ) expects to complete its restatement process before the end of August.

Fortinet (Nasdaq: FTNT) will release second quarter results after market close on Tuesday, July 30.

On the downside

Shares of Linn Energy (Nasdaq: LINE) continued falling after announcing a Securities and Exchange Commission informal inquiry late Monday.

Mead Johnson Nutrition (NYSE: MJN) extended its losses from yesterday when China launched an antitrust investigation into foreign infant milk formula makers.

Investors locked in profits on United States Steel (NYSE: X).

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 2 on the NYSE and by more than 2 to 1 on Nasdaq. The broader S&P 500 index lost 4 points to 1609.