US open: Dow and S&P dip slightly as fourth quarter GDP declines

US stocks edged lower on Friday, after data showed that US growth had declined slightly in the fourth quarter

Just before 10:00 in New York, the Dow Jones Industrial Average fell 0.11%, while the S&P 500 declined 0.03% and the Nasdaq edged forward 0.02%.

US gross domestic product in the fourth quarter fell to 2.2% from a 2.6% in the previous quarter, but above analysts' expectations of a 2.0% reading.

However, analysts were quick to dismiss the slowdown as a minor hiccup which was unlikely to worry US policymakers.

“Growth is certainly more sluggish than it was at the end of last year, but the US economy is still a shining beacon compared with other developed economies," said Dennis de Jong, managing director at UFX.com.

“There has been some slightly disappointing data this week and the Fed will be eager to see things pick up over the next few months.

"However, the oil crisis will continue to play havoc with the markets and the global economy remains in a precarious situation.”

De Jong's comments were echoed by Markit's chief economist Chris Williamson, who claimed the slowdown was unlikely to worry Fed policymakers, who remained likely to "keep calm and carry on" with contemplating an initial rate hike in the summer, possibly as early as June.

Meanwhile, US personal consumption declined slightly in the fourth quarter to 4.2%,while analysts had expected it to hold steady at 4.3%.

Following a data-heavy morning, which is completed by the Chicago PMI and University of Michigan Confidence survey released at 14:45 and 15:00 GMT respectively, William Dudley, the president of the New York Fed, and Cleveland Fed President Loretta Mester will both speak at 16:00 GMT, while Fed Vice Chairman Stanley Fischer will speak at 18:30 GMT.

In company news, JC Penney plummeted 13.49% after the retailer posted a surprise fourth quarter loss, while Apple fell 0.36% after Ericsson AB said it would sue the iPhone maker for allegedly infringing on 41 patents that are crucial to the functionality of its devices.

Gap rose 1.81% after the apparel company announced buybacks and a dividend increase late Thursday, while Monster Beverage surged 13%.

Gold futures fell 0.10% to $1,208.90, while the dollar slid slightly against the pound and the yen and dropped just over 0.2% against the euro.

After a sharp drop on Thursday, oil prices rebounded strongly on Friday, with West Texas Intermediate gaining 2.2% to $49.27 a barrel and Brent crude climbing 1.9% to $61.21 a barrel.