By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market opened lower on
Thursday, with the S&P 500 index retreating from record levels
reached during the previous session, as disappointing earnings from
Best Buy Co. Inc. and Citigroup Inc. dented sentiment.
The S&P 500 (SPX) opened down 5 points, or 0.3% at 1,843.07,
easing off its record closing level reached on Wednesday.
The Dow Jones Industrial Average(DJI) opened down 65 points, or
0.4%, at 16,417.49. The Nasdaq Composite(RIXF) dropped 7.9 point at
the open at 4,207.29.
Investors digested disappointing results from electronics
retailer Best Buy and Citigroup. Follow stock market live blog.
Best Buy (BBY) plunged 30% after the retailer reported
unexpectedly disappointing holiday sales as revenues dropped in the
fourth quarter.
Citigroup Inc. (C) shares were down 2.8% as the company's
fourth-quarter earnings missed Wall Street estimates.
Goldman Sachs Group Inc. (GS) was down 0.6% after topping
analyst forecasts. Nonetheless, profit was down 19% as trading
revenue sank.
In economic news, the number of Americans who applied last week
for unemployment benefits fell slightly and is now back to a level
that prevailed shortly before the Thanksgiving holiday, broadly in
line with economists' forecasts. Separately, U.S. consumer prices
rose a seasonally adjusted 0.3% in December, led by higher energy
and shelter costs, the Labor Department said. The overall and core
inflation numbers were also in line with expectations.
In a paper delivered at a Brookings Institution seminar on U.S.
monetary policy, San Francisco Fed president John Williams said,
"There are nagging concerns that large-scale asset purchases carry
with them particular risks to the economy or the health of the
financial system that we still don't fully understand."
He also said that the central bank's new forward guidance tool
seems "overly simplified and prone to misinterpretation."
Fed Chairman Ben Bernanke will sit down at 11 a.m. Eastern time
to review his record with Pulitzer-Prize winning author Liaquat
Ahamed. Bernanke won't be working off prepared remarks. Read
Spotlight on the Economy: Bernanke unscripted
Asset manager BlackRock Inc. (BLK) shares rose 3.6% after the
firm said profit jumped 22% in the fourth quarter, as the amount of
money it manages climbed 14%. The firm also raised its quarterly
cash dividend to $1.93 per share.
Yahoo Inc. (YHOO) said Wednesday that Chief Operating Officer
Henrique de Castro is leaving the company, effective Thursday.
Shares dropped 1.3%. Read commentary: Yahoo COO exit may be a bad
sign for fourth quarter.
SolarCity Corp. (SCTY) climbed 6.4% after Deutsche Bank analysts
initiated coverage of the solar company with a buy rating and a $90
price target, according to news reports. Fellow solar company First
Solar Inc. (FSLR) gained 0.8%.
Zoom Technologies Inc. (ZOOMD) revved up 21% as the tiny Chinese
mobile and telecommunications investor rubber-stamped a deal late
Wednesday to buy an online business travel provider.
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