NEW YORK, Nov 15, 2007 (AFP) - Wall Street shares opened lower Thursday, extending the previous day's retreat, after the government's consumer prices report showed inflation well above the Federal Reserve's comfort zone.

The Dow Jones Industrial Average fell 39.83 points (0.30 percent) to 13,191.18 just after the opening bell and the Nasdaq composite dropped 5.09 points (0.19 percent) to 2,639.23.

The broad-market Standard & Poor's 500 index slipped 4.06 points (0.28 percent) to 1,466.52.

The major indices slumped in late trade Wednesday in a volatile session a day after a strong rally. The Dow dropped 0.57 percent, the Nasdaq 1.10 percent and the S&P 0.71 percent.

"The selling pressure seen late yesterday is expected to persist in the early-going," said Patrick O'Hare, an analyst at Briefing.com.

The Labor Department reported consumer prices have increased 3.5 percent and core prices have risen 2.2 percent on a 12-month basis. The Fed views 2.0 percent inflation as the upper limit of a comfortable level for the economy.