Stocks slip after US economic growth disappoints

NEW YORK (AP) ? Stocks were mostly lower Friday after the government reported the U.S. economy grew at a slower pace than economists had expected in the fourth quarter.

The Dow Jones industrial average fell 59 points, or 0.5 percent, to 12,676 in the first hour of trading. The S&P 500 index fell 2 points to 1,317. The Nasdaq composite edged up 6 to 2,811.

The Commerce Department said the economy grew at a modest 2.8 percent in the final three months of last year. Economists had expected 3 percent growth.

Among stocks making big moves, Chevron Corp. fell 3 percent, the most of the 30 stocks in the Dow average, after the energy company’s fourth-quarter revenue and earnings per share came in well below what analysts were expecting. Oil and natural gas production declined in the quarter.

Ford Motor Co. fell 4.5 percent after reporting disappointing fourth quarter earnings due weak sales in Europe. The company said its results were also hurt by trouble at parts suppliers in Thailand due to flooding there.

Starbucks Corp. fell 2.7 percent after reporting late Thursday that that full year results were likely to come in less than expectations. Procter & Gamble Co., which makes Tide, Crest and other consumer products, fell less than 1 percent after cutting its earnings outlook.

Legg Mason fell 6 percent after the investment management company’s earnings fell in half as clients pulled money out of the firm. Legg Mason’s earnings of 20 cents per share were well below the 25 cents per share that analysts were expecting, according to FactSet.