Stocks stumble at the start

NEW YORK (CNNMoney.com) -- Pessimism persisted Friday on Wall Street despite an upbeat reading on the U.S. economy, just a day after the Dow industrials plunged more than 300 points on credit market fears.

The Dow Jones industrial average (up 8.62 to 13,482.19, Charts) fell 0.1 percent in early trading.

The broader S&P 500 (down 3.82 to 1,478.84, Charts) fell about 0.4 percent while the tech-fueled Nasdaq (down 5.64 to 2,593.70, Charts) slipped nearly 0.2 percent.

Credit market fears and more troubling news from the housing sector sent stocks tumbling Thursday, with the Dow falling 311 points - its second biggest point loss so far this year.

Investors around the world have been rattled by signs of tougher conditions in credit markets since tighter credit is likely to slow the buyout boom that's helped prop up stock prices. And it could raise the cost of borrowing for companies, hurting corporate earnings.

Investors did get some upbeat news from the economic front, as the Commerce Department reported that the nation's economy grew at a faster-than-expected pace of 3.4 percent during the second quarter. The report also contained some good news on inflation as a key inflation gauge fell unexpectedly.

In earnings news, Chevron (up $0.40 to $87.86, Charts, Fortune 500) reported improved quarterly earnings.

In corporate news, the European Union's top antitrust regulator charged Friday that Intel (down $0.07 to $23.93, Charts, Fortune 500) tried to use its huge market share to push smaller rival Advanced Micro Devices (down $0.11 to $14.62, Charts, Fortune 500) out of the central processing unit (CPU) business.

After the close Thursday, leading biotech Amgen (down $0.03 to $56.13, Charts, Fortune 500) reported a better-than- expected gain in earnings excluding special items.

The triple-digit loss also pummeled stocks overseas as Asian markets finished the sharply lower. In Europe, stocks fell slightly.

Treasuries fell, with the yield on the 10-year note climbing to 4.80 percent from 4.78 percent late Thursday. The dollar was higher against the euro and the yen.

Oil prices rose in early trading, as U.S. light crude gained 41 cents to $75.36 a barrel in early trade.