Updated from 9:08 a.m. EDT
U.S. stocks stumbled at the open Thursday, as a report on the overall health of the domestic economy came in weaker than expected and first-time filings for jobless claims ballooned.
Dow Jones Industrial Average
lost 110 points to 11,474, and the
was falling 9 points to 1275. The
was dropping 14 points at 2316.
Traders had been in a holding pattern ahead of the morning's economic data, but when the figures were released, the mood took a turn for the worse.
The big number came from the Commerce Department, which said second-quarter gross domestic product rose at a 1.9% annual rate. While that exceeded the first-quarter pace, it still fell short of the 2.3% consensus estimate.
Another disappointment was registered with the Labor Department's weekly initial jobless claims. According to the government, 448,000 claims were filed last week, more than 50,000 more than had been anticipated.
On Friday, the monthly employment report, always a key economic indicator, will be released.
The end of the prior session saw the market rally in the afternoon even as it faced an increase in crude oil prices, after the government signed into law a housing-relief bill and Automatic Data Processing released stronger-than-expected employment data.
After the close, coffee-shop operator
missed analysts' estimates
, on the other hand, delivered
on the strength of its debit-card business.
Also showing resilience was media company and Dow member
A swathe of more than 100 additional earnings statements were due out before the start of the new session.
Dow stock and oil company
announced a 14% increase in profits on the record oil prices of the past quarter. Gold miner
announced a 22% year-over-year increase in net income.
Among retailers, pharmacy
reported an earnings increase that left its financial results in line with expectations.
Traders likewise heard from consumer goods providers such as tobacco concern
, food conglomerate
and cereal maker
. Altria and Unilever both said profits declined from a year ago, while Kellogg announced rising income thanks to price increases that counteracted rising food-input costs.
Meanwhile, communications-technology name
said earnings were up 13% year over year and issued a positive full-year profit outlook. Health insurer
reported an increase in second-quarter profit thanks to increased membership and higher premiums.
In the financial space, credit card company
said it lost $747 million in the second quarter thanks to a $1 billion after-tax charge stemming from a settlement with rival card company
Away from earnings, pharmaceutical concern
, in which it already owns a minority stake, for $4.5 billion, or $60 a share, a 30% premium over its last closing price.
In commodities, the price of crude oil was rising 43 cents to $127.20. Gold for December shipment was adding $19.90 to $932.20.
As for Treasuries, the 10-year note was adding 23/32, yielding 3.95%, and the 30-year was down 1-6/32 to yield 4.57%. The dollar was falling vs. the euro, the yen and the pound.
Abroad, European indices were dropping, while Asian markets showed modest gains. London's FTSE and the DAX in Frankfurt were lower, while the Nikkei in Japan and the Hang Seng in Hong Kong were edging higher.
For a quick take on more of today's earnings, please click here.
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