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U.S. stocks open lower after data, eyes on Fed; Dow Jones down 0.07%

Published 04/30/2014, 09:36 AM
U.S. stocks fall as GDP data disappoints, Fed ahead
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Investing.com - U.S. stocks opened lower on Wednesday, after data showed that the U.S. economy grew less than expected in the first quarter, dampening optimism over the strength of the economy.

During early U.S. trade, the Dow 30 Jones Industrial Average eased 0.07%, the S&P 500 fell 0.20%, while the NASDAQ Composite slumped 0.46%.

In a report, the Bureau of Economic Analysis said U.S. gross domestic product grew at an annual rate of 0.1% in the first quarter, missing expectations for growth of 1.2%. The U.S. economy expanded by 2.6% in the previous quarter.

Separately, payroll processing firm ADP said non-farm private employment rose by 220,000 this month, above expectations for an increase of 210,000.

March’s figure was revised up to a gain of 209,000 from a previously reported increase of 191,000.

Shares in Exelon Corporation (NYSE:EXC), the largest U.S. nuclear operator, plunged 3.57% after saying it has agreed to buy Pepco Holdings Inc. for more than $5.4 billion in cash.

Twitter (NYSE:TWTR) added to losses, diving 12.53%, after the company said late Tuesday that membership in the first quarter reached 255 million, with year-over-year growth declining to 25% from 30% in the previous period.

The company added that sales more than doubled to $250 million, topping analyst estimates.

Meanwhile, Microsoft (NASDAQ:MSFT) slipped 0.22% after the tech giant announced that it will begin selling its Xbox One video-game console in China in September, after a 13-year ban on such equipment was lifted in January.

The device will reportedly be sold through Microsoft’s partnership with BesTV New Medi, a unit of Shanghai Media Group.

Elsewhere, shares in General Electric (NYSE:GE) held steady, dipping 0.01%, after French group Alstom (ALSO.PARIS) on Wednesday said it was considering the U.S. company's $13.5 billion bid for its energy unit.

Other stocks likely to be in focus included Thomson Reuters (TRI) and Time Warner (NYSE:TWX), scheduled to report quarterly results later in the day.

Across the Atlantic, European stock markets were mixed. The DJ Euro Stoxx 50 dropped 0.53%, France’s CAC 40 retreated 0.58%, Germany's DAX inched up 0.02%, while Britain's FTSE 100 added 0.18%.

During the Asian trading session, Hong Kong's Hang Seng plummeted 1.42%, while Japan’s Nikkei 225 added 0.11%.

Market participants were looking ahead to the Federal Reserve’s monetary policy statement later Wednesday. The U.S. central bank was expected to stick to its current timetable for tapering its asset purchase program.

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