US open: Stocks lower following hotter-than-expected CPI reading

13th Feb 2024 14:31

(Sharecast News) - Wall Street stocks were sharply lower early on Tuesday as market participants digested a slightly hotter-than-expected January inflation reading.

As of 1530 GMT, the Dow Jones Industrial Average was down 1.26% at 38,306.62, while the S&P 500 slipped 1.28% to 4,957.76 and the Nasdaq Composite came out the gate 1.52% weaker at 15,700.71.

The Dow opened 490.76 points lower on Tuesday, more than erasing gains recorded in the previous session that saw the blue-chip index close at a fresh record high.

Tuesday's primary focus was news that the US consumer price index had risen by 3.1% year-on-year to 308.417 in January, according to the Bureau of Labor Statistics, easing from a 3.4% increase in December but exceeding market expectations for a reading of a 2.9% advance - what would have been the first reading below 3% seen since April 2021

On a monthly basis, headline inflation increased 0.3%, ahead of expectations for a print of 0.2%. Excluding volatile food and energy prices, core CPI rose 0.4% last month and was 3.9% from higher on the year. Forecasts had been for readings of 0.3% and 3.7%, respectively.

Shelter prices, which make up roughly one-third of the CPI weighting, accounted for much of the increase, rising 0.6% on the month, contributing more than two-thirds of the headline increase, while food prices were also higher, up 0.4% on the month. Energy, on the other hand, helped offset rises seen elsewhere, down 0.9% principally due to a 3.3% drop in gas prices.

Elsewhere on the macro front, the National Federation of Independent Business' small business optimism index fell to 89.9 in January, down from 91.9 in December 2023 and the lowest reading in eight months. Labour quality and inflation both continued to be primary concerns for business owners.

In the corporate space, beverage giant Coca-Cola posted quarterly sales that came in ahead of estimates, primarily driven by higher prices, while toymaker Hasbro reported earnings that fell short of estimates and issued forward guidance that disappointed the market, and hotel chain Marriott beat on earnings but missed on revenues with its latest quarterly numbers.

Casino operator MGM Resorts will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $522.65 0.97%

Walt Disney Co. (DIS) $109.73 0.40%

Visa Inc. (V) $276.05 0.36%

Merck & Co. Inc. (MRK) $125.62 0.22%

Coca-Cola Co. (KO) $59.79 0.15%

Procter & Gamble Co. (PG) $157.17 0.04%

Dowdupont Inc. (DWDP) $0.00 0.00%

Verizon Communications Inc. (VZ) $40.01 -0.23%

Walmart Inc. (WMT) $169.79 -0.30%

Johnson & Johnson (JNJ) $157.13 -0.46%

Dow Jones - Fallers

Walgreens Boots Alliance, Inc. (WBA) $21.71 -4.07%

Goldman Sachs Group Inc. (GS) $378.93 -3.49%

Caterpillar Inc. (CAT) $311.61 -3.12%

Home Depot Inc. (HD) $354.38 -3.03%

Dow Chemical Co. (DOW) $53.23 -2.85%

Nike Inc. (NKE) $104.39 -2.60%

Salesforce.Com Inc. (CRM) $280.34 -2.43%

3M Co. (MMM) $92.34 -2.43%

Microsoft Corp. (MSFT) $406.80 -2.04%

Boeing Co. (BA) $205.31 -1.92%

S&P 500 - Risers

TripAdvisor Inc. (TRIP) $25.38 13.46%

Ecolab Inc. (ECL) $218.02 7.41%

Waste Management Inc. (WM) $197.28 4.79%

Incyte Corp. (INCY) $60.15 3.99%

Everest Group (EG) $368.67 2.15%

Republic Services Inc. (RSG) $175.28 1.91%

Principal Financial Group Inc (PFG) $80.36 1.80%

Hershey Foods Corp. (HSY) $196.90 1.64%

Expedia Group Inc. (EXPE) $135.41 1.35%

McKesson Corp. (MCK) $501.15 1.35%

S&P 500 - Fallers

Brighthouse Financial, Inc. (BHF) $45.19 -15.47%

VF Corp. (VFC) $16.06 -7.91%

Hanesbrands Inc. (HBI) $4.47 -7.82%

Invesco Ltd. (IVZ) $15.14 -7.73%

Ipg Photonics Corp. (IPGP) $94.57 -7.58%

Kohls Corp. (KSS) $25.84 -7.35%

Nordstrom Inc. (JWN) $18.66 -6.91%

Vornado Realty Trust (VNO) $24.79 -6.86%

Albemarle Corp. (ALB) $111.87 -6.86%

Arista Networks Inc. (ANET) $262.85 -6.49%

Nasdaq 100 - Risers

Incyte Corp. (INCY) $59.98 3.70%

Expedia Group Inc. (EXPE) $134.64 0.78%

O'Reilly Automotive Inc. (ORLY) $1,032.44 0.59%

Verisk Analytics Inc. (VRSK) $247.22 0.04%

Xilinx Inc. (XLNX) $0.00 0.00%

Alexion Pharmaceuticals Inc. (ALXN) $0.00 0.00%

Maxim Integrated Products Inc. (MXIM) $0.00 0.00%

Activision Blizzard Inc. (ATVI) $94.42 0.00%

Dish Network Corp. (DISH) $5.77 0.00%

Cerner Corp. (CERN) $0.00 0.00%

Nasdaq 100 - Fallers

Biogen Inc (BIIB) $229.40 -6.27%

Hasbro Inc (HAS) $48.46 -5.52%

Illumina Inc. (ILMN) $132.67 -5.21%

Qurate Retail Inc. (QRTEA) $0.85 -4.86%

Marriott International - Class A (MAR) $236.80 -4.84%

Micron Technology Inc. (MU) $81.79 -4.56%

eBay Inc. (EBAY) $41.51 -4.55%

Sirius XM Holdings Inc (SIRI) $4.80 -4.47%

Analog Devices Inc. (ADI) $185.76 -4.27%

Synopsys Inc. (SNPS) $545.64 -4.09%