US Stocks Open Lower After Weak Economic Growth Report

AP Photo by Richard Drew
In this Feb. 5, 2019, file photo trader Michael Urkonis works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EST on Thursday, Feb. 28.

NEW YORK (AP) — Stocks are opening slightly lower on Wall Street Thursday after the government reported that economic growth slowed down at the end of last year. There were also disappointing earnings and forecasts from several technology companies.

The latest figures show that the U.S. economy grew in the fourth quarter at its slowest pace since the beginning of 2018. The growth still beat economists' forecasts, which sent bond yields higher.

Several tech companies delivered subpar results. HP plunged after reporting weak sales of printers and computers. Cloud-computing company Box nosedived after giving delivering a weak forecast. Priceline.com parent Booking Holding fell after warning of a slowdown of sales in Europe.

Stocks in Asia, especially South Korea, fell after talks between U.S. President Donald Trump and North Korean leader Kim Jong Un ended abruptly without an agreement. By cutting short their meeting, the two leaders foiled hopes for an agreement with tangible progress toward ending the North's nuclear program that could have raised confidence across the region.

Investors are still waiting for more details on trade negotiations between the U.S. and China. U.S. Trade Representative Robert Lighthizer has raised doubts about progress, telling lawmakers that "much still needs to be done" before the sides can reach an agreement over Beijing's technology strategy and other issues.

KEEPING SCORE: The Dow Jones Industrial Average fell 30 points, or 0.1 percent, to 25,957 as of 10:10a.m. The S&P 500 index fell 0.3 percent and the Nasdaq composite lost 0.5 percent.

OVERSEAS: Stocks fell broadly in Asia. South Korea's Kospi shed 1.8 percent after negotiations between the U.S. and North Korea failed. Meanwhile, China's economy showed more signs of a slowdown with manufacturing activity falling to a three-year low in February.

Stocks were also broadly lower in Europe.

 

By AP reporter Damian J.  Troise

 

Categories: Finance, National News, Today’s Business News

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