Stocks Opened Lower on China Concerns

U.S. stocks opened lower on Friday as news of regulatory changes from China sent shock waves across global equity markets. The Dow Jones industrial average lately fell 230.55 points, or 1.27%, to 17,875.22. The S&P 500 lost 19.14 points, or 0.91%, to 2,085.85. The Nasdaq Composite dropped 59.10 points, or 1.18%, to 4,948.70.

The cost of living in the U.S. excluding food and fuel rose 0.2 percent in March for a third month, signaling inflation is starting to firm. The increase in the core consumer-price index reflected broad-based gains in rents, medical care, clothing and used vehicles, a Labor Department report showed Friday in Washington.

General Electric Co’s (GE.N) quarterly industrial earnings rose 9 percent, helped by cost cuts that expanded profit margin. Overall, GE posted a first-quarter net loss of $13.6 billion, or $1.35 per share. Excluding special items, GE posted earnings of 31 cents per share, topping by 1 cent the average analyst estimate, according to Thomson Reuters I/B/E/S.

Goldman Sachs said on Thursday that its business lines across the board were stronger in the first quarter, pushing the firm’s overall profit to its highest level in five years. The firm said that it earned $2.8 billion, or $5.94 a share, which easily beat analyst estimates of $4.26 a share.

Honeywell International Inc. reported first-quarter earnings that beat analysts’ estimates on reduced costs. Full-year sales will be in a range of $39 billion to $39.6 billion this year.

Coca-Cola Co (KO.N) has agreed to buy the beverage business of China Culiangwang Beverages Holdings Ltd for $400.5 million (266.7 million pounds) including debt, to get a foothold in the fast growing multi-grain drinks category.