Publications
Partners
Washington - US stocks opened lower Friday as the situation in Egypt remained tense and the White House said it planned to wind down state-backed mortgage giants Fannie Mae and Freddie Mac.
Sentiment was also dulled when Kraft Foods warned that cost inflation and continuing weak consumer spending power in some markets cast a cloud over the coming year.
At 1500 GMT the Dow Jones Industrial Average was down 17.52 points (0.14%) at 12 211.85, while the broad-based S&P 500 index fell 2.62 points (0.20%) to 1 319.25.
The tech-heavy Nasdaq dropped 3.49 points (0.13%) to 2 786.96.
"Concerns toward the Middle East are stymieing sentiment on the heels of Egyptian President Mubarak's decision to remain in office," analysts at Charles Schwab said in a client note.
"Kraft Foods' warning of 'significant input cost inflation,' and disappointing EPS (earnings per share) outlook are also hamstringing sentiment, while overshadowing the Dow member's favorable fourth-quarter revenue performance," they said.
Kraft Foods was only the most recent of a number of food and food service companies, including PepsiCo and McDonald's, which have warned of the looming effect of high inflation in key commodities.
Kraft shares fell 2.70% to $30.27 in early trade.
The market took a cautious stance as well to the release of a White Hose plan for a radical revamp of the housing mortgage industry, including winding down government-backed mortgage lenders Fannie Mae and Freddie Mac, which have underpinned the housing market for 40 years.
The bond market rose, pushing the yield on the 10-year Treasury down to 3.646% from 3.708% late Thursday. The 30-year yield fell to 4.713% against 4.773%.
Bond prices and yields move in opposite directions.
