NEW YORK, Feb. 28 (Xinhua) -- U.S. stocks traded lower on Thursday, as U.S. GDP rose at an annual rate of 2.6 percent for the fourth quarter of 2018, slower than the previous quarter, and a growing number of Americans filed application for jobless benefits last week.
At midday, the Dow Jones Industrial Average fell 28.00 points, or 0.11 percent, to 25,957.16. The S&P 500 was down 2.13 points, or 0.08 percent, to 2,790.25. The Nasdaq Composite Index dropped 5.13 points, or 0.07 percent, to 7,549.38.
Shares of HP Inc. plunged nearly 17 percent around midday, after the U.S. computer and printer giant reported fourth-quarter revenue that fell short of market estimates due to weakening printer supply sales.
U.S. leading financial institution Bank of America Merrill Lynch downgraded the company's stock from "buy" to "underperform," based on its soft quarterly earnings.
Yet shares of JC Penney sharply rose over 29 percent, after the U.S. retailer reported stronger-than-expected fourth-quarter earnings. The company previously announced it would shut down 18 full-line stores in 2019.
Six of the 11 primary S&P 500 sectors traded on a upbeat note around midday, with the real estate sector up over 1.4 percent, leading the advancers among the groups.
Differences over details of denuclearization and easing of sanctions hindered Kim Jong Un, top leader of the Democratic People's Republic of Korea, and U.S. President Donald Trump from reaching an agreement. However, their respective teams "look forward to meeting in the future."
On the economic front, although the U.S. fourth-quarter economic growth exceeded the forecasts of analysts surveyed by Dow Jones, the 2.6 percent reading was still lower than the third-quarter's 3.4 percent rate, the Commerce Department said Thursday.
The quarterly result came as consumer spending growth rate declined to 2.8 percent in the fourth quarter, down from the previous quarter's 3.5 percent. Consumer spending accounts for roughly two thirds of the overall U.S. economy.
U.S. weekly jobless claims, or the number of Americans applying for unemployment benefits, sharply rose 8,000 to 225,000 in the week ending Feb. 23, the Labor Department said Thursday.
The four-week moving average was 229,000, a decrease of 7,000 from the previous week's revised average, which is, however, still higher than January's levels. Enditem
