Stocks have moved to the downside in early trading on Friday, as traders shrug off some upbeat economic data released before the start of trading. The major averages have all slid into negative territory after ending the previous session mixed.
In the past few minutes, the major averages have edged up off their lows for the young session but remain in the red. The Dow is down 42.08 points or 0.4 percent at 12,007.92, the Nasdaq is down 11.02 points or 0.4 percent at 2,675.73 and the S&P 500 is down 3.81 points or 0.3 percent at 1,279.69.
The early weakness on Wall Street comes in spite of the release of a report from the Commerce Department showing a stronger than expected rebound in durable goods orders in the month of May.
The Commerce Department said that new orders for durable goods rose by 1.9 percent in May following a revised 2.7 percent drop in April. Economists had been expecting orders to increase by a more modest 1.5 percent.
While the increase was due in large part to a jump in commercial aircraft orders, durable goods orders still rose 0.6 percent excluding orders for transportation equipment.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said that the rebound in durable goods orders in May will help ease any fears that the economy is headed for a double-dip recession.
"Nevertheless, it doesn't change the broader picture that economic growth has slowed sharply over the past few months," he added.
A separate report from the Commerce Department showed that U.S. gross domestic product grew by 1.9 percent in the first quarter, reflecting an upward revision from the 1.8 percent growth that had been reported previously.
The slightly stronger than previously estimated growth reflected an upward revision to inventory investment and a downward revision to imports, which are a subtraction in the calculation of GDP.
Airline stocks are helping to lead the markets lower, dragging the NYSE Arca Airline Index down by 2.3 percent after it surged up to a nearly one-month closing high in the previous session. United Continental (UAL) and Delta Air Lines (DAL) are posting substantial losses.
Electronic storage, software, and semiconductor stocks have also come under considerable selling pressure in early trading. Most of the other major sectors are showing more modest moves, although notable strength is visible among utilities stocks.
In overseas trading, stock markets across the Asia-Pacific region closed mostly higher on Friday amid optimism about the situation in Greece. Japan's benchmark Nikkei 225 Index rose by 0.9 percent, while Hong Kong's Hang Seng Index surged up by 1.9 percent.
The major European markets have also moved to the upside on the day. The French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 0.8 percent, while the German DAX Index is up by 0.6 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.