US open: Dow down over 90 points on mixed data and earnings

US stock indices declined on Thursday, as investors digested a mixed bag of 'B-list' economic data and earnings.

Just after 15:00 London time, the Dow Jones was down 93 points, while the S&P 500 and the Nasdaq lost 10 and 27 points respectively, having all closed lower overnight.

This was despite encouraging employment data, with a 15-year low in the number of Americans who filed for unemployment benefits last week.

According to the Labor Department, initial jobless claims between 19 April and 25 April improved to a seasonally adjusted 262,000 from a revised 296,000, better than Wall Street’s expectations of a 287,000 reading.

Consumer spending in the States increased less than forecast in March while incomes stagnated, data from the Commerce Department revealed on Thursday.

Personal spending rose by a seasonally-adjusted 0.4% after a revised 0.2% increase in February, missing the consensus forecast of 0.5%. Meanwhile, personal incomes were flat in March following a 0.4% gain the month before, below the 0.2% growth expected by analysts.

"The various B-list data reports released this morning all point to an economy that is doing a lot better than the near-stagnation in first-quarter GDP suggests," said Paul Ashworth from Capital Economics.

On Wednesday, the Chicago PMI surged to 52.3 in April from 46.3 in March, to return above the 50-mark signaling expansion.

Yesterday, US stocks slid after the Federal Reserve left open the chance of an interest-rate hike as early as June following its two-day policy meeting.

The Fed said it anticipates a rebound in the US economy after the sluggish winter months.

“The first quarter was certainly one to forget for the US but there were so many temporary factors driving that slowdown and companies will adjust to the stronger dollar in time,” said Oanda’s senior market analyst Craig Erlam.

“It would have been a big mistake for the Fed to push back plans for a hike based on that quarter alone.”

Corporate news

In company news, oral care and personal care group Colgate-Palmolive shed 1.9% after reporting a bigger-than-expected drop in first quarter sales, adding it expected double-digit decline in annual earnings per share.

Oil giant Exxon Mobil fell 0.53% after posting better-than-expected profit and sales, although its earnings were affected by the plunge in oil prices.

Energy group ConocoPhillips fell 0.15% after reporting a slightly wider-than-expected first quarter loss early on Thursday.

Online review company Yelp plunged 17.6% after reporting late on Wednesday that its first quarter earnings missed expectations.

Media giant Time Warner edged forward 0.04%, despite reporting early on Thursday that its first quarter profit and revenue fell short of estimates.

The earnings season continues with Visa, American International Group and LinkedIn set to publish results after the close.

The dollar rose 0.38% and 0.41% against the pound and the yen respectively and gained 0.3% against the euro, while gold futures plunged 2.10% to $1,184.60.

Oil prices were broadly stable, with both West Texas Intermediate and Brent edging lower 0.08% to $58.53 a barrel and $65.79 a barrel respectively.