US open: Stocks lower following hotter-than-expected CPI reading
By Iain Gilbert
Date: Wednesday 12 Feb 2025
(Sharecast News) - Wall Street stocks were lower early on Wednesday as traders digested a hotter-than-expected January consumer inflation report.
As of 1530 GMT, the Dow Jones Industrial Average was down 0.75% at 44,260.87, while the S&P 500 lost 0.57% to 6,033.96 and the Nasdaq Composite came out the gate 0.31% weaker at 19,582.97.
The Dow opened 332.78 points lower on Wednesday, extending losses recorded in the previous session following Congressional testimony from Federal Reserve chairman Jerome Powell.
Wednesday's primary focus was January's consumer price index, which revealed US consumer prices rose a hotter-than-expected 0.5% in January. According to the Bureau of Labor Statistics, the consumer price index increased to 317.67 points in January, up from 315.61 in December. On an annualised basis, CPI edged up to 3% last month, up from 2.9% a month earlier.
The index for shelter rose 0.4%, making up almost 30% of the monthly all-items increase, while annual core inflation, which strips out volatile food and energy costs, unexpectedly rose to 3.3% from 3.2%, compared to forecasts it would slow to 3.1%. Monthly core inflation edged up 0.4%, which was also more than expected. Economists have also voiced fears that Donald Trump's newly instituted tariffs could offset disinflation seen elsewhere.
Elsewhere on the macro front, mortgage applications increased 2.3% in the week ended 7 February, according to the Mortgage Bankers Association of America, with applications to purchase a home falling 2% week-on-week and applications to refinance a mortgage soaring 10%.
In the corporate space, pharmacy chain CVS rallied thanks to Q4 results that came in ahead of expectations on the Street, with revenues hitting $97.71bn and earnings per share of $1.19, while Kraft Heinz said FY profits would be below forecasts as it missed quarterly sales estimates on the back of weak demand price rises.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Intel Corp. (INTC) $21.35 5.12%
Amgen Inc. (AMGN) $294.34 1.77%
Apple Inc. (AAPL) $232.03 0.68%
Walmart Inc. (WMT) $103.07 0.59%
Unitedhealth Group Inc. (UNH) $536.74 0.53%
Coca-Cola Co. (KO) $67.86 0.38%
JP Morgan Chase & Co. (JPM) $275.75 0.28%
Dowdupont Inc. (DWDP) $0.00 0.00%
Procter & Gamble Co. (PG) $169.37 -0.04%
Chevron Corp. (CVX) $157.31 -0.08%
Dow Jones - Fallers
Home Depot Inc. (HD) $404.82 -2.77%
Walgreens Boots Alliance, Inc. (WBA) $9.56 -2.30%
Caterpillar Inc. (CAT) $354.00 -2.27%
Salesforce.Com Inc. (CRM) $317.19 -2.22%
American Express Co. (AXP) $305.77 -1.23%
Cisco Systems Inc. (CSCO) $61.61 -1.22%
Johnson & Johnson (JNJ) $154.54 -1.02%
Dow Chemical Co. (DOW) $38.24 -1.01%
3M Co. (MMM) $148.74 -0.89%
Travelers Company Inc. (TRV) $240.31 -0.84%
S&P 500 - Risers
CVS Health Corp (CVS) $63.28 15.06%
Gilead Sciences Inc. (GILD) $104.07 9.00%
Edwards Lifesciences Corp. (EW) $74.85 5.55%
Intel Corp. (INTC) $21.35 5.12%
CME Group Inc. (CME) $249.90 3.85%
Charter Communications Inc. (CHTR) $353.00 2.93%
Tapestry Inc. (TPR) $83.66 2.83%
Mondelez International Inc. (MDLZ) $60.05 2.75%
United Airlines Holdings Inc (UAL) $106.36 2.74%
Humana Inc. (HUM) $264.24 2.68%
S&P 500 - Fallers
Wabtec Corp. (WAB) $187.81 -9.76%
Ipg Photonics Corp. (IPGP) $61.06 -9.61%
Waters Corp. (WAT) $369.84 -8.75%
Biogen Inc (BIIB) $129.33 -7.71%
Iron Mountain Inc (New) (IRM) $100.04 -5.80%
Coty Inc. Class A (COTY) $5.86 -4.64%
TripAdvisor Inc. (TRIP) $17.61 -4.42%
Cincinnati Financial Corp. (CINF) $134.38 -4.37%
Fortinet Inc. (FTNT) $104.78 -4.30%
Micron Technology Inc. (MU) $90.47 -4.18%
Nasdaq 100 - Risers
Gilead Sciences Inc. (GILD) $104.07 9.00%
Intel Corp. (INTC) $21.35 5.12%
NetEase Inc. Ads (NTES) $107.21 3.03%
Charter Communications Inc. (CHTR) $353.00 2.93%
Mondelez International Inc. (MDLZ) $60.05 2.75%
Vodafone Group Plc ADS (VOD) $8.60 2.20%
Trip.com Group Limited (TCOM) $66.44 1.97%
Comcast Corp. (CMCSA) $35.17 1.97%
Amgen Inc. (AMGN) $294.34 1.77%
American Airlines Group (AAL) $16.56 1.63%
Nasdaq 100 - Fallers
Biogen Inc (BIIB) $129.33 -7.71%
Workday, Inc. (WDAY) $254.47 -4.87%
JD.com, Inc. (JD) $38.92 -4.44%
Micron Technology Inc. (MU) $90.47 -4.18%
Illumina Inc. (ILMN) $100.58 -4.13%
Synopsys Inc. (SNPS) $508.50 -3.70%
Tesla Inc (TSLA) $333.90 -3.63%
Autodesk Inc. (ADSK) $294.01 -3.29%
Dollar Tree Inc (DLTR) $70.51 -3.28%
Lam Research Corp. (LRCX) $80.70 -3.17%
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