Stocks are lower (SPY, SPX, DJI, IXIC)

Stocks continue to take a breather from the rally earlier this week as they decline in early trading Friday.

Near 10:06 a.m. ET, the Dow was down 123 points, the S&P 500 was down 13 points, and the Nasdaq was down 21 points — all by less than 1%.

Stocks broke a three-session green streak from last Friday through Tuesday — the longest this year — as short sellers covered their positions. Still, it’s the best week of the year for stocks.

Ahead of the US market open, indexes across Europe were in the red.

Crude oil prices were also lower, with West Texas Intermediate crude futures in New York breaking $30 per barrel to drop as low as $29.14, down about 3%.

The economic data in this morning was January CPI, flat compared to the prior year on the headline, but rising by the most in four years on a “core” basis.

Following the data, bond yields rose, with the inflation-sensitive 2-year yield climbing four basis points to 0.754%. The benchmark 10-year yield was up one basis point to 1.774%.

The Federal Reserve is betting that inflation will steadily rise to its 2% target, as transitory factors like low gas prices dissipate.

Meanwhile, the Canadian dollar is getting slammed after a release showed that retail sales plunged 2.2% in December, worse than forecast.

Baker Hughes will release its weekly rig count data at 1 p.m. ET.

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