US stocks opened lower after a larger than expected jump in weekly jobless claims.
The spectre of deflation was also raised by a bigger than anticipated fall in consumer prices in January, largely as a result of sharply lower oil prices.
Consumer prices fell for the third month in a row and the year-on-year change turned negative for the first time since 2009.
Computer chip giant Intel was the biggest faller among Dow constituents, with oil giants Chevron and Exxon Mobil the next hardest hit, as the oil price comes off the boil.
The Dow Jones average was down 18 (0.1%) at 18,206, while the broader-based S&P 500 was down two points (0.1%) at 2,112.
The NASDAQ Composite surrendered early gains and was off 11 points (0.2%) after half an hour’s trading at 4,956.
In corporate news, software firm Salesforce.com was wanted after publishing results after the bell last night.
Fourth quarter earnings per share (EPS) of 14 cents were in line with the market’s expectations. Investors have been encouraged by the revelation that deferred revenue – revenue from software-as-a-service – rose 32% to US$3.32bn.
The market usually responds positively to plans to lob a load of people on the dole, and retailer Chico's FAS duly saw its shares rise as it announced plans to cut jobs and close shops.
Tourist attractions operator SeaWorld dived after a deeper than expected quarterly loss, although revenue was better than analysts had been expecting.
Morgan Stanley was in focus after a US$2.6bn settlement with the US government over a number of mortgage-lending issues.