Stocks waver in early going

NEW YORK (CNNMoney.com) -- Stocks struggled early Thursday as investors weighed a lackluster reading on economic growth and exercised caution ahead of the closely watched Federal Reserve interest rate statement due later this afternoon.

The 30-share Dow Jones industrial average (down 28.70 to 13,399.03, Charts) slipped about 0.1 percent in early trading, while the broader S&P 500 (down 1.31 to 1,505.03, Charts) was little changed. The tech-heavy Nasdaq (up 2.24 to 2,607.59, Charts) was also little changed.

The Commerce Department released its final revision of first-quarter economic growth, which showed the nation's economy grew at a slightly faster pace in the first quarter than previous estimates. But the reading missed estimates and also included slightly higher inflation pressures.

The gross domestic product, the broadest measure of the nation's economic activity, grew at an annual 0.7 percent in the first three months of the year.

The reading was the weakest in more than four years as businesses sold off inventories but consumer spending remained strong.

Economists surveyed by Briefing.com expected the GDP to be revised up to 0.8 percent from the previous 0.6 percent gain.

Economic growth and inflation will be key issues later in the day as investors await the close of the Fed's two-day policy meeting and the accompanying statement on interest rates.

Central bank policymakers are widely expected to keep the target for a key short-term interest rate unchanged at 5.25 percent, but as always, investors will have their eyes glued on the policy statement due at 2:15 p.m. ET.

In corporate news, troubled U.S. automaker General Motors announced a deal Thursday to sell subsidiary Allison Transmission to private-equity firms The Carlyle Group and Canada-based Onex Corporation for $5.57 billion. GM (up $0.51 to $37.92, Charts, Fortune 500) shares jumped about 2 percent.

Builder KB Home (down $0.63 to $39.80, Charts, Fortune 500) reported an unexpected quarterly net loss of $1.93 a share as revenue tumbled due to the weak housing market. KB shares lost over 1 percent.

And Capital One Financial (up $0.56 to $79.36, Charts, Fortune 500), the credit card issuer and banking company, said it expects to eliminate about 2,000 jobs, or 6 percent of its workforce, as it struggles with mortgage banking losses and higher credit costs. Its shares rose over 1 percent.

Bonds slipped ahead of the Fed policy statement, taking the yield on the 10-year note to 5.09 percent from 5.08 percent late Wednesday. Bond prices and yields move in opposite directions.

Oil prices were higher in early trading. U.S. light crude gained 92 cents to $69.89 a barrel on the New York mercantile Exchange.

In global trade, European shares got off to a positive start, lifted by Wall Street's rebound. Markets in Asia also advanced.

The dollar was little changed against the euro and higher versus the yen.