Stocks Opened Lower after Inflation Data

U.S. stocks opened lower on Friday as data showed that inflation firmed in January, that could allow the Federal Reserve to gradually raise interest rates this year. The Dow Jones industrial average lately fell 78.76 points, or 0.48%, to 16,334.67. The S&P 500 lost 9.69 points, or 0.51%, to 1,908.14. The Nasdaq Composite dropped 10.84 points, or 0.24%, to 4,476.70.

U.S. consumer prices were unchanged in January, as the rising costs of housing and health care were largely offset by cheaper oil. But the annual pace of inflation showed signs of acceleration. The Labor Department said Friday that prices have risen 1.4 percent over the past 12 months, compared to a year ago when annual inflation was close to zero.

Oil prices fell on Friday. Brent oil slid $1.00, or 2.9%, to $33.28 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down $1.12, or 3.6%, at $29.65 a barrel.

Deere & Co., the world’s biggest seller of tractors and harvesting combines, pulled in its forecast for the year as the company continues to struggle with slumping farming and equipment markets. Sales fell 13%, worse than the 11% decline Deere had predicted.

Yahoo’s board of directors has formed a committee to explore “strategic alternatives” for the struggling Net company. A strategic review committee of independent directors has been created to “conduct a process to evaluate strategic alternatives for the company,” Yahoo’s Chairman of the Board Maynard Webb said Friday.