US open: Stocks lower as inflation data weighs on markets

dl wall street st new york city nyc nyse stock exchange ny dow jones nasdaq sp finance us usa united states of america — Wall StreetSharecast photo / Josh White

Wall Street stocks were in the red early on Friday as a week dominated by inflation data gets set to draw to a close.

As of 1640 GMT, the Dow Jones Industrial Average was down 0.56% at 38,687.83, while the S&P 500 lost 0.77% to 5,110.88 and the Nasdaq Composite came out the gate 1.07% weaker at 15,955.26.

The Dow opened 217.83 points lower on Friday, extending losses recorded in the previous session after February's producer price index came in hotter than expected. Bond yields climbed early in the session, with the benchmark 10-year Treasury note hitting 4.301% as market participants began to worry that recent economic data may be too strong for the Federal Reserve to loosen monetary policy at its upcoming meeting on 19 and 20 March.

Also in focus, trading volumes will be elevated on Friday, while prices may also be volatile, as futures and options on stock indices and individual stocks all expire at the same time in a process known as "triple witching".

On the macro front, US imports increased by $3.6bn month-on-month to $324.6bn in January, their highest level in twelve months, according to the Census Bureau, primarily driven by a $3.1bn rise in goods purchases, while exports increased by just $300.0m to $257.2bn, due in part to a $200.0m jump in goods sales.

Elsewhere, the New York Fed Empire State index tumbled to -20.9 in March, down from -2.4 in February and much worse than forecasts for a reading of -7. The reading showed that manufacturing activity had continued to decline in New York state, with demand softening as new orders declined significantly and shipments fell.

On another note, a preliminary reading of the University of Michigan's consumer sentiment index edged own to 76.5 in March from 76.9 in February, the lowest level seen in three months and missing forecasts for an unchanged reading. Small improvements in personal finances were offset by modest declines in expectations for business conditions.

In the corporate space, software giant Adobe traded sharply lower at the open on the back of weak sales forecasts, while beauty retailer Ulta also headed south after issuing disappointing earnings guidance.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $20.93 1.50%
3M Co. (MMM) $104.54 1.37%
Boeing Co. (BA) $183.50 1.30%
JP Morgan Chase & Co. (JPM) $189.98 1.07%
Caterpillar Inc. (CAT) $344.73 0.82%
Walt Disney Co. (DIS) $112.46 0.36%
Unitedhealth Group Inc. (UNH) $490.12 0.23%
Amgen Inc. (AMGN) $272.13 0.22%
Merck & Co. Inc. (MRK) $120.61 0.09%
Verizon Communications Inc. (VZ) $39.79 0.05%