US open: Equity markets off on a downbeat note after GDP disappoints

Shortly before 1400 GMT, the Dow Jones Industrial Average was down 28 points to 17,751.86, while the S&P 500 and the Nasdaq were six and 24 points lower respectively.

On Wednesday, the Fed decided to keep interest rates unchanged at 0.25%, as most analysts expected, and left the door open to an increase in December, downplaying global economic headwinds in its statement on the decision.

GDP slows down more than expected

Figures released on Thursday showed US gross domestic product expanded 1.5% over the three months to September, slower than the 3.9% gain registered in the previous quarter and weaker than analysts’ expectations for a 1.6% reading.

Personal consumption expenditures, which make up the lion's share of GDP, grew at 3.2% after expanding by 3.6% over the previous three months, falling slightly short of consensus for a 3.3% increase.

“The high frequency data suggest that the US economy has entered the fourth quarter on a weak footing," said Markit's chief economist Chris Williamson.

“The US GDP data also add to signs that the global economy slowed in the third quarter, something which will worry policymakers, even if they are loathe top openly admit it.”

Elsewhere, according to the Department of Labor, new claims rose by 1,000 to 260,000 in the week to 24 October, compared with analysts' expectations for a 265,000 reading.

Meanwhile, the average of new claims over the last four weeks fell by 3000 to a seasonally adjusted 259,250, the lowest reading in 42 years, the report added.

GoPro slumps

In company news, GoPro tumbled 15.7% after the maker of action cameras said late on Wednesday its earnings and sales missed estimates.

Biopharmaceutical group Baxalta gained 1.33% after delivering a positive full-year outlook on the back of better-than-expected quarterly profit, while the New York Times gained 2.22% after swinging to a profit.

Botox treatments-maker Allergan, slid 0.06% after it revealed it was recently approached by Pfizer over a potential takeover, while Starbucks and LinkedIn will report after the close.

Elsewhere, European stocks pulled back slightly, while Asian markets struggled for direction and oil prices declined, with West Texas Intermediate losing 1.41% to $45.32 a barrel and Brent losing 1.59% to $48.28 a barrel.

The dollar was broadly flat against the euro and the pound and gained 0.16% against the yen, while gold futures edged 0.37% lower to $1,151.84.