US open: Major indices extend losses

dl exchange place wall st street pl new york city nyc ny nyse stock exchange dow jones sp nasdaq finance dollar dollars us usa united states of america — Exchange PlaceSharecast photo / Josh White

Major indices were in the red early on Friday after stocks staged a dramatic reversal to end the session sharply lower.

As of 1520 BST, the Dow Jones Industrial Average was down 1.08% at 34,417.64 and the S&P 500 was 0.80% weaker at 4,358.60, while the Nasdaq Composite came out the gate 0.28% softer at 13,137.15.

The Dow opened 375.17 points lower on Friday, extending losses recorded in the previous session.

Corporate earnings were in focus at the open, with American Express delivering earnings that beat Wall Street expectations thanks to a continued rebound in travel and improved spending trends among younger cardholders. The New York-based company posted $2.1bn in net income, or $2.73 on a per share basis, up from $2.2bn at the same time a year earlier and well ahead of consensus estimates for a reading of $2.40 per share.

Elsewhere, Verizon stock slipped early on Friday after the firm revealed it had earned an adjusted $1.35 per share in the first quarter, bang in line with estimates, while consumer products company Kimberly-Clark shares were in the green after posting better-than-expected quarterly earnings and revenue.

On the macro front, the S&P Global US Composite PMI came to 55.1 in April, down from 57.7 in March, according to a preliminary estimate, the lowest reading in three months, principally due to the impact of inflation on customer spending.

Stocks made an about-face turn on Thursday after Federal Reserve chairman Jerome Powell said there was a possibility that a larger-than-usual rate hike may be set for next month. Powell's assertion that taming inflation was "absolutely essential" and that a 50-basis-point hike was on the table for May were still drawing an amount of investor attention at the start of trading on Friday.

In addition to Powell's comments, Treasury yields were in focus early on Friday, with the yield on the benchmark 10-year Treasury note trading slightly higher at 2.891% prior to the open.

Dow Jones - Risers

Dow Chemical Co. (DOW) $70.82 1.88%
Boeing Co. (BA) $181.64 0.34%
Chevron Corp. (CVX) $164.85 0.16%
Honeywell International Inc. (HON) $230.94 0.00%
Dowdupont Inc. (DWDP) $30.52 0.00%
Apple Inc. (AAPL) $166.26 -0.10%
Microsoft Corp. (MSFT) $280.41 -0.14%
Intel Corp. (INTC) $47.35 -0.32%
Walmart Inc. (WMT) $159.30 -0.36%
Coca-Cola Co. (KO) $65.93 -0.43%