Stocks are turning in a lackluster performance in early trading on Friday as traders digest a report on U.S. economic growth in the final three months of last year. The major averages have turned mixed on the day after moving modestly lower at the open.
Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is up 3.32 points or 0.1 percent at 2,808.60, the Dow is down 38.98 points or 0.3 percent at 12,695.65 and the S&P 500 is down 1.81 points or 0.1 percent at 1,316.62.
The markets initially reacted negatively to a report from the Commerce Department showing somewhat weaker than expected fourth quarter GDP growth, although selling pressure waned not long after the start of trading.
The report showed that GDP increased at an annual rate of 2.8 percent in the fourth quarter compared to the 1.8 percent growth seen in the third quarter.
While GDP growth showed a notable acceleration compared to the previous quarter, economists had been expecting an increase of about 3.1 percent.
Economists were also disappointed that much of the GDP growth in the fourth quarter was due to a positive contribution from private inventory investment
Paul Ashworth, Chief U.S. Economist at Capital Economics, said, "The much bigger than expected positive contribution from inventories in Q4 leaves us even more convinced that growth will slow again to a sub-2% rate in Q1 of this year."
Nonetheless, most of the major sectors are showing only modest moves in early trading, although significant weakness is visible among networking stocks. Juniper Networks (JNPR) is posting a substantial loss after providing disappointing first quarter guidance.
On the other hand, oil service and chemical stocks have moved to the upside, with Eastman Chemical (EMN) leading the chemical sector higher after forecasting better than expected first quarter earnings. Eastman also announced an agreement to acquire Solutia (SOA) for about $3.4 billion.
In overseas trading, stock markets across the Asia-Pacific region closed mostly higher on Friday, although Japan's Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent. Hong Kong's Hang Seng Index rose by 0.3 percent, while Australia's All Ordinaries Index closed up by 0.5 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index has dipped by 0.3 percent, the U.K.'s FTSE 100 Index has fallen by 0.9 percent, and the French CAC 40 Index has slumped by 1.1 percent.
In the bond market, treasuries have shown a lack of direction over the course of the morning. The yield on the benchmark ten-year note is down by less than a basis point at 1.93 percent.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.