Dow Slips After US Economic Growth Disappoints

(Dow Jones) - US blue chip stocks finished in the red Friday after a reading on domestic economic growth fell short of expectations.

The Dow Jones Industrial Average closed down 74 points, or 0.6 percent, to 12,660. The Standard & Poor's 500-stock index fell 2.1 points, or 0.2 percent, to 1,316, while the Nasdaq Composite Index rose 11 points, or 0.4 percent, to 2,817.

The nation's gross domestic product, the value of all goods and services produced, expanded at an annual rate of 2.8 percent from October to December, up from 1.8 percent in the third quarter. Though the data showed the US economy expanded at the fastest pace since the second quarter of 2010, the reading fell short of the expected three percent rate.

The materials and health care sectors led the S&P, while utilities and consumer staples lagged behind. Chevron fell the most among blue chips, down 2.5 percent, after the company announced refining profits fell in the fourth quarter as margins suffered from higher oil prices and weak fuel demand.

In Europe, the Stoxx Europe 600 fell one percent, as the cost of insuring Portugal's debt against default climbed to a record. Traders remained cautious despite claims that Greece was close to a deal with private creditors to restructure its debt.

Asian bourses were mostly higher, with Hong Kong's Hang Seng Index rising 0.3 percent. Japan's Nikkei was down 0.1 percent.

Gold futures edged up $5.50, or 0.3 percent, to $1,731.80 a troy ounce, while crude oil prices lost 14 cents, or 0.1 percent, to $99.56 a barrel. The dollar lost ground against the euro and the yen.

Starbucks fell one percent after the coffee seller's fiscal first-quarter earnings and revenue exceeded expectations, but its second-quarter earnings outlook was below forecasts.

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