NEW YORK (CNNMoney.com) - Stocks slipped Thursday morning as signs of inflation in the morning's economic report gave investors an impetus to cash out after the previous session's advance.

The Dow Jones industrial average (down 17.13 to 10,936.82, Charts), the broader Standard & Poor's 500 index (down 2.23 to 1,280.23, Charts) and the Nasdaq composite (down 6.67 to 2,303.89, Charts) all declined modestly in the early going.

Strong earnings from Boeing fueled a blue-chip rally Wednesday, allowing investors to shrug off any disappointment about Google's quarterly results.

But the tone Thursday was more negative, particularly after the morning's economic indicators.

Business productivity fell at a 0.6 percent annual rate in the fourth quarter, the government reported Thursday morning. That was a bigger slowdown than what economists surveyed by Briefing.com were expecting. At the same time labor costs zoomed, all of which may have sparked new concerns about inflation.

A separate government report showed a surprise drop in weekly jobless claims from the previous week.

Additionally, investors took in mostly upbeat January sales reports from the nation's retailers.

Among those reporting, No. 1 retailer Wal-Mart Stores said sales at stores open a year or more, or same-store sales, rose 4.7 percent in the month, at the high end of its previous forecast. Wal-Mart (up $0.21 to $46.35, Research) shares inched higher.

Other companies, such as J.C. Penney, reported a rise in January sales but issued cautious comments on February results. J.C. Penney (unchanged at $55.97, Research) shares fell at the open.

Oil prices remained above $66 a barrel amid ongoing concerns about Iran's nuclear program and what impact it may have on that country's oil exports.

Nonetheless, oil prices were a bit lower. U.S. light crude oil for March delivery fell 22 cents to $66.34 per barrel on the New York Mercantile Exchange.

Treasury prices fell, raising the yield on the 10-year note to 4.57 percent from 4.55 percent late Wednesday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and the yen.

COMEX gold for April delivery rose $2.90 to $572.30 an ounce.

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