US open: Stocks lower amid ongoing inflationary concerns

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 at the bell on Friday amid ongoing inflationary concerns.

As of 1510 GMT, the Dow Jones Industrial Average was down 0.19% at 33,633.93, while the S&P 500 lost 0.67% to 4,063.05 and the Nasdaq Composite came out the gate 0.96% softer at 11,741.61.

The Dow opened 62.92 points lower on Friday, extending losses recorded in the previous session as market participants digested a number of data points that stoked fears of rate hikes.

Going into the final session of the week, the Dow Jones is 0.51% lower for the week and on track for its third losing week in a row, while the Nasdaq is up 1.18% and the S&P 500 is flat.

On the macro front, Federal Reserve Reserve Bank of Richmond president Thomas Barkin said he had seen some progress on inflation, with demand normalising, but warned that labour shortages may still persist, citing low immigration as a cause.

Elsewhere, the Conference Board's leading index fell 0.3% in January to 110.3, in line with expectations, and its chief executive warned that he still expects the US economy to tip into recession in 2023. Over the six months ended January, the leading index dropped 3.6%.

"The US LEI remained on a downward trajectory, but its rate of decline moderated slightly in January," said CB's Ataman Ozyildirim. "Among the leading indicators, deteriorating manufacturing new orders, consumers' expectations of business conditions, and credit conditions more than offset strengths in labour markets and stock prices to drive the index lower in the month. The contribution of the yield spread component of the LEI also turned negative in the last two months, which is often a signal of recession to come."

In the corporate space, meme stock favourite AMC Entertainment crushed earnings estimates by $1.47 per share, sending the stock higher in early trade, and trade bellwether Deer & Co beat estimates by $1.02 per share and posted revenues that topped expectations.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Amgen Inc. (AMGN) $237.38 1.35%
Unitedhealth Group Inc. (UNH) $492.97 1.15%
Coca-Cola Co. (KO) $59.85 1.06%
Procter & Gamble Co. (PG) $138.32 0.86%
Walmart Inc. (WMT) $145.42 0.80%
McDonald's Corp. (MCD) $267.46 0.62%
Merck & Co. Inc. (MRK) $107.09 0.54%
Verizon Communications Inc. (VZ) $40.05 0.53%
Caterpillar Inc. (CAT) $247.78 0.51%
Travelers Company Inc. (TRV) $183.96 0.49%