U.S. stocks opened lower on weak banks earnings, soft data

U.S. stocks opened lower Thursday, as quarter earnings of U.S. banks were disappointing and jobless claims came in negative.

Citigroup Inc., the third largest U.S. bank by assets, reported early Thursday net income of 350 million U.S. dollars for the fourth quarter 2014, or 0.06 dollars per diluted share, on revenues of 17.8 billion dollars. This compared to net income of 2. 5 billion dollars, or 0.77 dollars per diluted share, on revenues of 17.8 billion dollars for the fourth quarter 2013. Legal and related expenses and repositioning charges totaled 3.5 billion dollars in the current quarter, compared to 1 billion dollars in the prior year period.

Bank of America Corp. said early Thursday its net income for the fourth quarter of 2014 was 3.1 billion U.S. dollars, or 0.25 dollar per diluted share, down from 3.4 billion dollars, or 0.29 dollars per share, in the fourth quarter of 2013.

The two companies' results were well below market estimates, in response their shares shed more than 3 percent shortly after the opening bell.

On the economic front, the number of Americans who initially applied for jobless benefits in the week ending Jan. 10 increased 19,000 to 316,000 from the previous week's revised level, the U.S. Labor Department said Thursday.

Separately, it said the U.S. Producer Price Index for final demand fell 0.3 percent in December on a seasonally adjusted basis.

Shortly after the opening bell, the Dow Jones Industrial Average fell 55.65 points, or 0.32 percent, to 17,371.44. The S&P 500 dipped 10.45 points, or 0.52 percent, to 2,000.82. The Nasdaq Composite Index lost 33.29 points, or 0.72 percent, to 4,643.46.

On the previous day, U.S. stocks tumbled with the three major indices extending their losses into a fourth straight day, weighed by mixed earnings of American banks, soft data and concerns about global economy. Endite