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U.S. stocks fall after mixed data on inflation

Published 02/14/2023, 09:48 AM
Updated 02/14/2023, 10:44 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were falling after data showed inflation picked up in January from the prior month.

At 10:40 ET (15:40 GMT), the Dow Jones Industrial Average was down 199 points or 0.6% while the S&P 500 was down 0.5% and the NASDAQ Composite was down 0.5%.

The consumer price index for last month rose 0.5%, after a 0.1% revised increase for December. The pace of the increase over the year ending in January did slow, however, rising 6.4%, slightly more than expectations. And the pace has slowed since mid-last year.

Core CPI, which excludes food and fuel prices, rose 0.4% for the month as expected and 5.6% for the year, again slightly ahead of expectations.

Analysts had hoped the numbers would give more definitive evidence that successive interest rate hikes last year to tame inflation were working. Growth stocks in particular have risen this year in the hope that the Fed could soon put a pause on its rate hikes.

But hopes are fading for a quick end. Many now see another quarter of a percentage point increase when the Fed meets in March and at least another one after that in May, with the benchmark rate rising to above 5% by mid-summer.

The National Federation of Independent Business small business optimism reading was 90.3 for January, lower than expected though an uptick from the prior reading.

Coca-Cola Co (NYSE:KO) shares ticked lower 0.7% despite a strong full-year profit forecast from the beverage maker. Shares of Marriott International Inc (NASDAQ:MAR) rose 0.7% after the hotel giant forecast stronger than expected first quarter earnings on strong travel demand.

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Boeing Co (NYSE:BA) shares rose 1.2% after the announcement that Air India had ordered 200 planes. 

Oil fell. Crude Oil WTI Futures were down 1.5% to $78.93 a barrel, while Brent Oil Futures are down 1.3% to $85.44 a barrel. Gold Futures are up 0.2% to $1867.

Latest comments

what the ..hell
Manipulators pumped Nasdaq by hope of rapid inflation down and rates limit. But Today data shows their theory is full of mistake and wrong. Even Nasdaq try to resist to waterfall cause those manipulators still cheating Nasdaq. SEC should investigate long position accounts today and veil the manipulating traders. Do your job, SEC!
This has been happening here since Biden has been president. Look at what is being done all the time. Only negativity and negative information. What good was done?
SEC do somthing to market manopulators. They cheated market so far by groundless hope and today it veiled clearly. Inflation is higher than ecpected and sticky enough. Don't make US Nasdaq as cheating market.
Nothing mixed... Inflation is high and interest rates are going higher! Next FED minutes + 0.50% (5,25%)
5.25% is still far from the optimum values. We need at least 10%. Even if it means a severe recession...
Thanks goodness for yesterday's miracle pump to offset today's losses. Its almost as if these markets are rigged or something?? lol
Thay volatility whip was deadly for the puts
And the criminal pumps are humming in the BIGGEST INVESTMENT JOKE IN THE WORLD.
Inflation ends up being higher than expected. So are stock market valuations.
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