U.S stocks fall; GoPro surges on debut

NEW YORK (MarketWatch) -- U.S. stocks moved lower in early trade Thursday as investors reacted to softer-than-expected economic data and rate hike comments from James Bullard, the St. Louis Fed President.

Bullard said that inflation may hit 2% target and unemployment may fall below 6% level by the year end, well below the Fed's estimates.

Personal income rose less than expected, while the PCE index rose in May to its highest 12-month rate since October 2012. Weekly jobless claims fell slightly and remained near a post-recession low.

The S&P 500 (SPX) fell 8 points, or 0.4%, to 1,951.93. The Dow Jones Industrial Average (DJI) dropped as much as 119 points, but recovered some losses to trade 70 points, or 0.4%, to 16,797.51 by late morning.

810.94. The Nasdaq Composite (RIXF) shed 18 points, or 0.4%, to 4,362.03.

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Lawrence Creatura, portfolio manager at Federated Investors, said that QE tapering is essentially a rate hike.

"The fact that we are approaching the targets on inflation and unemployment at a moment when the economy is not particularly healthy, is a source of anxiety for a lot of investors. Even as the Fed says the rates will stay low, the tapering is essentially a rate hike," Creature said.

In economic data, the number of people who applied for U.S. unemployment benefits fell slightly last week and remained near a post-recession low, indicating that the nation's low pace of layoffs and an upturn in hiring are likely to continue.

Separately, consumers splurged on new cars and trucks in May, but not much else despite another solid month of income gains. And inflation continued its steady march higher.