U.S. stocks opened lower after data showed that the U.S. economy picked up in the second quarter, though below estimates.
U.S. stocks dipped at open with the S&P 500 dipping 3 points, or 0.2%, lower at 2,104.
The Dow Jones
Industrial Average gave up 21 points, or 0.1%, to 17,733.
The Nasdaq Composite began the session down 10 points, or 0.2%, at 5,102.
The U.S. dollar index was higher 0.43% at 97.64.
The U.S. economy picked up modestly in the spring after a dim start to the year, rising at an annual 2.3% rate in the second quarter, but below expectations for growth of 2.6%.
Growth was led by consumer spending on big-ticket items such as
new cars as well as home construction, the government said Thursday.
Consumer spending, the main engine of U.S. growth, climbed 2.9%.
Business investment minus housing dipped 0.6%.
Home construction outlays
rose 6.6%.
The value of inventories fell slightly to $110 billion from
$112.8 billion, while exports rose 5.3% and imports increased 3.5%.
Inflation as measured by the PCE price index increased at a 2.2% annual
rate after declining by a 1.9% pace in the first quarter.
Excluding food
and energy, core PCE rose to a 1.8% annual pace from 1% in the first
three months of the year.
In the first quarter, GDP was revised up to show a 0.6% gain instead of a 0.2% contraction, based on new methodology meant to make the report more accurate.
Meanwhile, the Labor Department said earlier that initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 267,000 for the week ended July 25. Analysts had expected initial jobless claims to rise by 15,000 to 270,000 last week.
Claims for the prior week were unrevised at 255,000, which was the lowest level since November 1973.
