US open: Stocks fall as oil prices slide

US stocks declined on Thursday as an upbeat report on durable goods orders was offset by a fall in oil prices.

The Dow Jones Industrial Average fell 0.11%, the Nasdaq declined 0.50% and the S&P 500 dipped 0.15% at 1512 GMT.

US durable goods orders jumped 4.9% in January, beating analysts’ estimates for a 2.9% increase, the Commerce Department revealed.

“The 4.9% month-on-month increase in durable goods orders in January was flattered by a strong rebound in the notoriously volatile aircraft component, but details of the report bode well for equipment investment in the first quarter and should quell fears that the US economy is heading for a recession,” said Capital Economics.

“Indeed, the risks to our estimate that first-quarter GDP will be around 2.5% annualised now appear to lie on the upside.”

Initial jobless claims rose more than expected in the latest week, according to Labor Department. Claims climbed to 272,000 in the week to 20 February from 262,000, more than the 280,000 that was pencilled in by analysts.

The Federal Housing Finance Agency´s monthly house price index increased 0.4% month-on-month, missing forecasts of 0.5%.

Meanwhile, oil prices continued to slide after data showed US crude inventories rose further, adding to concerns about the supply glut. US crude inventory rose by 3.5 million barrels last week, according to data from the US Energy Information Administration.

West Texas Intermediate crude fell 2.0% to $31.51 per barrel and Brent dropped 1.3% to $33.95 per barrel at 1520 GMT.

Comments from Federal Reserve Bank of Atlanta President Dennis Lockhart also weighed on sentiment after he warned that rising US interest rates could undermine bank profits amid global market turmoil, slowing emerging economies and indications that inflation may be improving.

“Rising rates will create challenges in managing net interest margins and risks,” he said in remarks at a banking conference in Atlanta on Thursday.

In company news, shares in Best Buy dropped after sentiment from fourth quarter results above expectations and new capital return measures were offset by a downbeat profit outlook.

Kohl’s slumped after it posted a 20% fall in fourth quarter profit and announced plans to close underperforming locations.

The US dollar rose 0.04% against the pound and 0.45% against the yen, but fell 0.8% versus the euro.