US open: Stocks open lower as Intel and Exxon weigh on Dow

Stocks headed south at the open on Friday following a much stronger than expected first-quarter GDP reading and another batch of corporate earnings.

As of 1520 BST, the Dow Jones Industrial Average was down 0.15% at 26,422.24, while the S&P 500 traded 0.10% lower at 2,923.33 and the Nasdaq moved 0.35% softer to 8,090.37.

The Dow opened 39 points lower after equities closed mixed on Thursday as technology names rallied while industrial shares fell following earnings figures.

In corporate news, Amazon was up 0.44% in early trade after the global technology company posted its first-quarter earnings after US markets closed last night.

Amazon's results for the three months ended 31 March reflected an ongoing change at the company with slightly lower growth rates but bigger profit margins.

Discussing the results, analysts at Shore Capital said: "The Amazon juggernaut continues at pace, demonstrated in the Q1 results. Our key takeaway is that whilst the revenue growth has slowed, the sales mix towards services is starting to build operating margins. The investment in Q2 in Prime delivery is further evidence of the relentless focus on the end consume."

Exxon Mobil lost 2.84% at the bell as the oil and gas giant revealed that its first-quarter profits fell nearly 50% from a year ago, hit by poor results in its refining and chemicals, and American Airlines flew 2.66% lower after the carrier lowered its earnings forecast for the year.

Tyremaker Goodyear was 0.66% firmer after reporting a soft first-quarter, with tyre unit volume dropping 3% and operating income slide from $281m to $190 on the back of higher than expected material costs and unfavourable currency movements.

Intel plunged 9.6% at the bell after the chipmaker provided investors with some weak guidance, putting its stocks dangerously close to its biggest single-day decline in more than 10 years.

On the data front, America's economy grew much more quickly than anticipated at the start of the year, helped by strong contributions from household spending, exports and non-residential fixed investment.

According to the Department of Commerce, the annualised rate of growth in first-quarter gross domestic product over the first three months of the year hit 3.2%.

That followed growth of 2.2% at the tail-end of 2018.

However, price pressures ebbed significantly, as the annualised rate of increase in the price index for gross domestic purchases slowed from 1.7% over the final three months of 2018 to just 0.8% in the first quarter.

On a more positive note, the personal savings rate rose from 6.8% to 7.0%.

Elsewhere, consumer sentiment fell less than originally thought during April, ending the month slightly ahead of estimates.

The University of Michigan's final April sentiment index slipped to 97.2 from the 98.4 recorded a month earlier, beating preliminary readings of 96.9 and consensus forecasts on the Street.

However, the gauge of current conditions was weaker than previously reported but the expectations index came in slightly stronger.