Lower-than-expected US growth dampens markets
NEW YORK - US stocks were mostly lower in early trade Friday after the government published a disappointing below-forecast figure for fourth-quarter economic growth.
At 1515 GMT the Dow Jones Industrial Average was down 60.85 points (0.48 percent) to 12,673.78, while the broad-based S&P 500 slipped 3.03 points (0.23 percent) to 1,315.40
But the Nasdaq Composite edged up 2.07 (0.07 percent) to 2,807.35 helped by rises in tech mainstays Seagate, Google and Apple.
The Commerce Department said economic growth in the last quarter of 2011 picked up to a 2.8 percent annual pace from 1.8 percent the previous quarter, well below average forecasts of 3.2 percent.
"Muddling through is the best term that can be applied to the current economic environment, even though the risks of a downturn have been reduced," Steven Ricchiuto of Mizuho Securities said in an analysis of the data.
Shares of automaker Ford lost 4.7 percent after its fourth-quarter and annual reports showed adjusted earnings per share of $1.66 well below market expectations.
Procter & Gamble fell 0.5 percent after posting a sharp drop in quarterly profits under pressure from higher commodity costs.
Specialty chemicals maker Solutia jumped 41 percent after Eastman Chemicals said it would buy the company for $3.4 billion in cash and stock.
Eastman gained 8.5 percent.
Bond prices were flat. The yield on the 10-year Treasury held steady at 1.93 percent, while the 30-year barely rose to 3.10 percent from 3.09 percent Thursday. — Agence France Presse
At 1515 GMT the Dow Jones Industrial Average was down 60.85 points (0.48 percent) to 12,673.78, while the broad-based S&P 500 slipped 3.03 points (0.23 percent) to 1,315.40
But the Nasdaq Composite edged up 2.07 (0.07 percent) to 2,807.35 helped by rises in tech mainstays Seagate, Google and Apple.
The Commerce Department said economic growth in the last quarter of 2011 picked up to a 2.8 percent annual pace from 1.8 percent the previous quarter, well below average forecasts of 3.2 percent.
"Muddling through is the best term that can be applied to the current economic environment, even though the risks of a downturn have been reduced," Steven Ricchiuto of Mizuho Securities said in an analysis of the data.
Shares of automaker Ford lost 4.7 percent after its fourth-quarter and annual reports showed adjusted earnings per share of $1.66 well below market expectations.
Procter & Gamble fell 0.5 percent after posting a sharp drop in quarterly profits under pressure from higher commodity costs.
Specialty chemicals maker Solutia jumped 41 percent after Eastman Chemicals said it would buy the company for $3.4 billion in cash and stock.
Eastman gained 8.5 percent.
Bond prices were flat. The yield on the 10-year Treasury held steady at 1.93 percent, while the 30-year barely rose to 3.10 percent from 3.09 percent Thursday. — Agence France Presse
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