US open: Stocks fluctuate as economy slows down in Q4

US stocks fluctuated on Friday, after government data showed economy slowed down more than anticipated in the fourth quarter.

Just after 09:40 in New York, the Dow Jones Industrial Average was down 48.97 points at 17,367.88, while the S&P 500 fell 0.35% and the Nasdaq rose 0.25%.

The US economy slowed down to a 2.6% growth rate in the fourth quarter, more than analysts had expected.

Gross domestic product (GDP), the broadest measure of goods and services produced across the economy, grew at a 2.6% annual rate in the fourth quarter, the Commerce Department said.

According to figures released on Friday, the US economy grew 5% in the third quarter and 4.6% in the second quarter after declining in the first three months of the year, while economists had expected GDP to grow by a seasonally adjusted 3.2%.

“There are signs, however, that economic growth could start to pick up again in coming months," said Markit chief economist Chris Williamson.

"Consumer confidence rose to its highest since August 2007 in January, according to the conference board, most likely buoyed by the boost to spending power from lower oil costs and the recent slide in inflation.

"The announcement of full-scale quantitative easing by the European Central Bank should also help boost business and consumer confidence in Europe, which remains a major export market for the US."

In corporate news, Google rose over 1% after failing to satisfy investors in the latest disappointing turn of earnings season. The tech giant said profits rose almost 30% but it failed to meet revenue forecasts.

"The strong US dollar was a major concern heading into the fourth quarter earnings season and that was precisely the reason given by Google for missing earnings estimates overnight and is contributing towards a lower open on Friday and could lead to a loss for major indices in January," said CMC Markets analyst Jasper Lawler.

Amazon surged over 10% after announcing late on Thursday that sales surged 15% and profits fell less than expected.

Mattel fell over 1.5% after confirming a decline in sales and profit ahead of the bell and saying it will “thoroughly evaluate” its business, while Eli Lilly & Co. edged 0.3% higher after reporting adjusted fourth-quarter earnings of 75 cents a share, beating expectations.

Intercept Pharmaceuticals surged 17% after the drug maker said late Thursday its investigational treatment for a liver disease was granted breakthrough-therapy status, while MasterCard Inc. rose 2% after reporting a rise in fourth-quarter revenue that was better than expected.

Gold futures rose 0.7% to $1,263.50, while the dollar rose against the pound and the euro but lost over 0.5% against the yen.

The price of West Texas Intermediate crude rose almost 0.3% to just over $44.5 a barrel, while the price of Brent crude fell 0.2% to $49 a barrel.