Stocks slip after economic data, GE rating cut

Stocks declined in early trading Thursday after mixed economic data and a cut in General Electric Co.'s credit rating. Standard & Poor's said it is lowering GE's top rating one notch because of problems at the conglomerate's lending arm. GE — the oldest component in the Dow Jones industrials — was one of only six companies that had a “AAA" rating from S&P. The move did not appear to surprise shareholders — GE shares managed to trade in positive territory after the ratings cut. But the move nonetheless pointed out to the market that even the most stable U.S. companies are on shakier footing in the current economic environment. Government data showed the economy continues to deteriorate. The Labor Department said first-time claims for unemployment benefits rose to 654,000 from the previous week's figure of 639,000, more than analysts' expectations. The Commerce Department said retail sales fell by 0.1 percent in February — less than the 0.5 percent drop economists predicted, but the seventh decline in eight months. In early trading, the Dow Jones industrial average fell 53.05, or 0.77 percent, at 6,877.35. The Standard & Poor's 500 index fell 5.25, or 0.73 percent, to 716.11, and the Nasdaq composite index fell 15.43, or 1.12 percent, to 1,356.21.