Stocks Opened Lower after Weak GDP

U.S. stocks opened lower on Friday after government data showed economy slowed down in the fourth quarter by more than
expected. The Dow Jones Industrial Average lately fell 11.40 points, or 0.07%, to 17,405.45.The S&P 500was down 3.74
points, or 0.19%, to 2,017.51. The Nasdaq Composite added 16.81 points, or 0.36%, to 4,700.22.

U.S. economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006.Gross domestic product expanded at a 2.6 percent annual pace after the third quarter’s spectacular 5 percent rate, the Commerce Department said in its first GDP snapshot on Friday.

Costco Wholesale Corp. said Friday that it will spend $2.2 billion to pay out a one-time dividend of $5 a share. Costco said the special dividend, which is in addition to its quarterly dividend of 36 cents a share, will be funded through existing cash and additional borrowings.

Xerox Corp. on Friday cut its outlook for 2015, citing a weakening euro, and gave a disappointing outlook for its current quarter. Xerox said it now expects to post $1 to $1.06 a share in earnings for 2015, down from its previous guidance of $1.11 to $1.17 a share.

Eli Lilly and Co. said Friday foreign-exchange pressures weighed on sales in the most recent quarter as the pharmaceutical company continued to suffer the impact of patent expirations on some of its key drugs. The company, citing the stronger U.S. dollar, adjusted its outlook for the year, including reducing its revenue estimate to a range of $19.5 billion to $20 billion from its previous guidance of $20.3 billion to $20.8 billion.