* Twitter opens at $45.10, rallies on heavy volume
* ECB interest-rate cut a surprise
* U.S. GDP tops expectations as inventories rise
* Qualcomm falls after results, outlook
* Indexes down: Dow 0.4 pct, S&P 0.7 pct, Nasdaq 1.3 pct
By Luke Swiderski
NEW YORK, Nov 7 Frenzied buying in Twitter
shares dominated Wall Street's attention on Thursday, as the
social media stock opened well above expectations, while major
averages fell, led by the Nasdaq.
The broader market was hurt after weak earnings from Whole
Foods and Qualcomm and lackluster economic figures, including
the first read on U.S. third-quarter gross domestic product that
was elevated by inventory accumulation.
Shares of Twitter surged 77 percent to $46.10 from
its $26 IPO price, after opening at $45.10 and rallying from
there. The orderly open of the shares on NYSE Euronext's New
York Stock Exchange calmed nerves over another Facebook-style
"It's definitely a hot IPO, and it's doing what it should be
doing" said Dan Veru, chief investment officer at Palisade
Capital Management. "It seems like they have averted any issues
that happened with Facebook."
The rest of the market, meanwhile, was somewhat downbeat.
Qualcomm shares fell 4 percent to $66.93, the biggest
drag on both the S&P 500 and Nasdaq 100 indexes after the
company forecast revenue below expectations.
The Nasdaq was the weakest of the major averages, led lower
by a 9 percent drop in Whole Foods after its results on
Wednesday, while Tesla Motors continued its slide,
dropping 8 percent one day after a big fall on lackluster
earnings and on reports of a third car fire. The stock remains a
favorite among short-sellers who believe it is overvalued.
The Dow Jones industrial average fell 62.58 points or
0.4 percent, to 15,684.3, the S&P 500 lost 12.12 points
or 0.68 percent, to 1,758.37 and the Nasdaq Composite
dropped 51.381 points or 1.31 percent, to 3,880.565.
Stock futures had jumped higher earlier in the day after the
European Central Bank surprisingly cut interest rates,
responding to a slump in inflation that sparked fears the euro
zone's economic recovery could stall. The ECB move reinforced
expectations global central banks will continue to take actions
to buoy struggling economies worldwide.
Separately, weekly initial jobless claims fell 9,000 to a
seasonally adjusted 336,000 last week, roughly in line with
expectations of a drop to 335,000.
The GDP data, coupled with Friday's payrolls report, may
give investors insight into how long the Fed may keep intact its
$85 billion a month in bond purchases. The central bank's
stimulus measures have been a key component of the 24.1 percent
year-to-date gain in the S&P 500, putting the index on pace for
its best yearly performance since 2003.