US open: Stocks decline as overseas data adds to concerns of global slowdown

US stocks declined on Thursday, as data showed consumer prices were largely unchanged, while weak data from Europe and China added to the growing concerns over a global slowdown.

Just before 10:00 in New York, the Dow Jones Industrial Average was down 0.40%, while the S&P 500 fell 0.15% and the Nasdaq dropped 0.57%.

US consumer prices were flat month-on-month and rose by 1.7% year-on-year, according to the Bureau of Labor Statistics (BLS).

The consensus estimate had been for the consumer price index to slip by 0.1% over the month and rise by 1.6% year-on-year.

Core prices, which exclude food and energy, rose by 0.2% on the month and advanced by 1.7% over the year, while energy prices dropped a seasonally adjusted 1.9%, registering their fourth straight decline.

According to data released by Markit on Thursday, the purchasing managers’ index for factories and services activity in the Eurozone fell unexpectedly in November, reaching its lowest level in 16 months, while the HSBC China Manufacturing Purchasing Managers Index fell to a six-month low in November.

Meanwhile, the number of people who applied for unemployment benefits remained below the 300,000 threshold for the 10th straight week, as the US economy continues to strengthen.

Initial jobless claims fell to 290,000 in the week ended 15 November, in line with consensus expectations of 284,000, while claims for the previous week were revised upward to 293,000, bringing the four-week moving average to 288,000.

Salesforce.com fell after estimating fourth quarter sales and profit that could miss analysts’ forecast amid a slowdown in corporate spending on the company’s software and services.

Keurig Green Mountain slid after anticipating first quarter earnings per diluted share will be no higher than 88 cents, compared with analysts’ expectations of 96 cents.

GoPro fell sharply after the sports-camera maker priced a secondary share offering about 11% below Wednesday’s close, while Best Buy soared after better-than-expected third quarter profits.

The dollar fell against the yen, euro and pound while gold futures slid to $1,190.40.

The yield on the 10-year US Treasury note fell five basis points to 2.31%, while the yield on the 30-year note dropped six basis points to 3.02% and the yield on the five-year Treasuries shed four basis points to 1.61%.

Oil prices rebounded slightly, with Brent crude gaining almost one percentage point to just under $79 a barrel, while West Texas intermediate crude gained 0.7% and was trading at just over $75 a barrel.