(Corrects bullet to show Alphabet, not Apple hit record high)
* Q1 GDP up 0.7 pct vs. est. 1.2 pct rise
* Amazon, Alphabet hit record highs after results
* Intel's fall weighs on all three indexes
* Nasdaq on track for 6th straight monthly gain
* Dow down 0.14 pct, S&P off 0.15 pct, Nasdaq flat
By Tanya Agrawal
April 28 U.S. stocks were slightly lower in
early afternoon trading on Friday after data showed the economy
grew at its weakest pace in three years in the first quarter.
Gross domestic product increased at a 0.7 percent annual
rate, below the 1.2 percent rise estimated by economists, as
consumer spending barely increased and businesses invested less
on inventories. The economy grew at a pace of 2.1 percent in the
Other data showed that the University of Michigan's final
April consumer sentiment index was at 97, below analysts'
expectations of 98.
"The U.S. consumer spending is the most sensitive part of
the economy and the GDP data has shown a very disappointing
number," said Naeem Aslam, chief market analyst at Think Markets
UK in London.
"We do anticipate that it is about time that we will see
some reality check here."
The Nasdaq Composite opened at a record high, propelled by
gains in Amazon.com and Google-parent Alphabet, and is on track
to post gains for the sixth straight month.
Amazon rose as much as 3.4 percent to a life high
of $949.59, while Alphabet gained as much as 4.9
percent to a record of $935.90 after their quarterly results
The S&P 500 and the Dow are also set to end the month in the
positive territory as the corporate earnings season continues to
Overall profits of S&P 500 companies are estimated to have
risen 13.6 percent in the first quarter, the most since 2011,
according to Thomson Reuters I/B/E/S.
While strong earnings have kept the market at or near record
levels, persistent geopolitical tensions surrounding North Korea
and doubts whether the Trump administration will be able to pass
its tax and healthcare plans in Congress have weighed on
President Donald Trump told Reuters in an interview on
Thursday that a "major, major conflict" with North Korea was
possible over its nuclear and ballistic missile programs.
At 12:42 p.m. ET (1642 GMT) the Dow Jones Industrial Average
was down 29.18 points, or 0.14 percent, at 20,952.15, the
S&P 500 was down 3.59 points, or 0.15 percent, at
The Nasdaq Composite was up 0.15 points, or 0
percent, at 6,049.09.
Nine of the 11 major S&P 500 sectors were lower, with the
telecommunications index's 0.91 percent fall leading
Intel fell 3.4 percent to $36.17 after the company
reported lower-than-expected quarterly revenue. The stock was
the biggest drag on the three indexes.
Baidu was down 5.2 percent at $178.21 after the
Chinese internet company forecast second-quarter revenue largely
below estimates. The stock was the second-biggest drag on the
Declining issues outnumbered advancers on the NYSE by 1,774
to 1,051. On the Nasdaq, 1,882 issues fell and 858 advanced.
The S&P 500 index showed 35 new 52-week highs and five new
lows, while the Nasdaq recorded 85 new highs and 32 new lows.
(Reporting by Tanya Agrawal; Editing by Anil D'Silva)