US open: Stocks fall after downbeat US data

US stocks fell as the latest initial jobless claims data came in worse than expected and import prices continued to decline in December.

The Dow Jones Industrial Average slid 2.05%, the Nasdaq decreased 3.41% and the S&P 500 slipped 2.15% at 1431 GMT.

Jobless claims rose to 284,000 in the week to 9 January from 277,000 the previous week, missing expectations of 275,000, the Labor Department revealed.

Continuing claims for the week ended 2 January rose to 2.263m, the second consecutive weekly increase of 29,000. It follows the previous reading of 2.234m and compares to analysts’ estimate of 2.21m.

The import price index slid 8.2% in December compared to year ago, following a 9.5% decrease in November. Analysts had predicted an 8.4% fall.

“This report shows that the downward trend in import prices remains solidly in place,” Barclays Research warned. “We expect import prices to decline further over the medium term as the effects of past dollar appreciation continue to weigh on prices.”

Elsewhere, Asia stocks were mostly lower on Wednesday following a broad sell-off on Wall Street on Tuesday, with the Hang Seng index and Japan’s Nikkei 225 index finishing down 0.59% and 2.68% respectively but Shanghai bucking the trend with a 1.98% rise after a volatile session.

It followed oil prices yo-yoing as data the previous day showed inventories of US crude oil and refined products hit record highs, adding to worries about an oversupply in the market.

Inventories of gasoline increased by 8.4m barrels in the week to 8 January, following a 10.6m barrel build the previous week, higher than expectations for a 1.6m build, data from the Energy Information Administration revealed.

“A depressed oil price remains hindered by global oversupply and the prospect of it getting worse as Iran returns to market, while China jitters continue to shake everything from commodities to financials,” said Mike van Dulken, head of research at Accendo Markets.

At 1417 GMT, West Texas Intermediate crude rose 1.13% to $30.52 per barrel and Brent was up 0.68% to $30.52 per barrel.

The dollar fell 0.03% against the pound and dropped 0.14% against the euro but rose 0.09% versus the yen.

In company news, JPMorgan Chase & Co. shares advanced after it posted a 10.2% rise in fourth quarter profit, surpassing expectations as expenses fell.

Goldman Sachs climbed following a report in The Wall Street Journal that the investment bank plans to cut up to 10% of its fixed-income traders and salespeople.

GoPro shares plunged after the camera manufacturer posted a shortfall in fourth quarter revenues and announced plans to cut 7% of its workforce.