Investing.com -- U.S. stocks were wobbling after Amazon said revenue was slowing in its cloud computing unit.
At 9:55 ET, the Dow Jones Industrial Average was up 33 points or 0.1%, while the S&P 500 was up 0.1% and the NASDAQ Composite was down 0.1%.
A closely watched inflation measure rose as expected, which is confirming expectations that the Federal Reserve will raise rates next week by another quarter of a percentage point.
The personal consumption expenditure index rose 4.2% in March from one year ago, slowing from a 5.1% annual increase in February. On a monthly basis, PCE rose 0.1%, lower than expectations. Excluding food and energy prices, the core PCE was up 4.6% compared with expectations for a 4.5% rise.
Amazon.com, Inc. (NASDAQ:AMZN) shares were falling 3.6%, weighed down by the cloud computing news, which has cast a shadow over otherwise positive results for the first quarter.
Disappearing message app Snap Inc. (NYSE:SNAP)’s shares fell 19% after it said advertising trends continue to weigh on results, and Pinterest Inc. (NYSE:PINS) also forecast slower than expected second quarter revenue growth because of advertising spending. Its shares were down 14%.
The earnings news is coming amid signs the economy is slowing. On Thursday, a reading of first quarter gross domestic product rose 1.1%, lower than expected, triggering fears the economy could dip into a recession. Futures traders have been betting on a Fed rate hike next week, and then a pause at the meeting in June.
Later this morning, the Fed will release the results of an internal review of its supervision of Silicon Valley Bank, which collapsed in March and sparked fears of a broader contagion in the banking sector. Another regional lender, First Republic Bank (NYSE:FRC), was rising on Friday amid hopes that a deal was coming.
Oil was mixed. Crude Oil WTI Futures was flat at $74.73 a barrel, while Brent Oil Futures crude was up 0.1% to $78.31 a barrel. Gold Futures was down 0.3% to $1,992.