US close: Stocks mixed ahead of inflation data, but Dow hits another record

US equity markets finished mixed on Monday as stocks searched for direction ahead of key inflation data, with the Nasdaq and S&P 500 slipping into the red but the Dow notching its 12th record close of the year.

The S&P 500 and the Nasdaq, which had been trading higher earlier on, took a dive in late-afternoon trade to finish down 0.09% and 0.30%, respectively, while the Dow gained 0.3% to 38,797.38 – a new all-time closing high.

“Tomorrow’s CPI reading in the US promises to be the main event of the week," said Chris Beauchamp, analyst at IG. The year-on-year change in the consumer price index is forecast to be 2.9% in January, slowing sharply from 3.4% in December. If data meets the consensus forecast, this would represent the lowest rate of inflation since March 2021.

"Price growth is expected to keep slowing towards the Fed’s target, so investors will be hoping for a bigger-than-expected drop in order to provide the foundations of a rally to fresh record highs for US indices," Beauchamp said.

However, on Monday, Federal Reserve governor Michelle Bowman said it was "too soon to predict" when the central bank will look to start cutting interest rates or even just how far the cuts will go, adding that she does not think it appropriate to begin cuts in the "immediate future."

The corporate earnings calendar was relatively quiet on Monday after a busy few weeks, but things will pick up in the coming days, with Lyft, DoorDash, Kraft Heinz, Hasbro and Coca-Cola all set to report before the week is out.

VF Corp surges

Struggling Vans and North Face owner VF Corp surged 14% on reports that activist investor Engaged Capital won the backing of a member of VF's founding family to push for a board seat to drive quicker change. The move comes just a week after the company missed profits forecasts for its fiscal third quarter by a wide margin.

Oil and gas company Diamondback Energy gained 9% after agreeing to buy rival Endeavor Energy Resources in a $26bn deal. The consideration will consist of around 117.3m shares of Diamondback common stock and $8bn in cash. Diamondback will own approximately 60.5% of the combined entity, while Endeavor’s equity holders will own the rest.

Biotech firm AbbVie was out of favour after cutting its forecasts for its first quarter due to the dilutive effect of its ImmunoGen acquisition.

Meanwhile, discount retailer Big Lots dropped 28% despite meeting expectations with its fourth-quarter results as broker Loop Capital downgraded the stock from 'hold' to 'sell' on the back of the company's "precarious" finances and said its outlook was "very concerning". "We believe Big Lots has lost substantial consumer relevance and mindshare, which in our long experience is very difficult – if not impossible – to regain,” Loop Capital said.

Dow Jones - Risers

Nike Inc. (NKE) $106.87 2.27%
Walgreens Boots Alliance, Inc. (WBA) $22.74 2.23%
Goldman Sachs Group Inc. (GS) $392.04 2.02%
3M Co. (MMM) $94.56 1.79%
Intel Corp. (INTC) $44.03 1.67%
Caterpillar Inc. (CAT) $321.90 1.49%
Dow Chemical Co. (DOW) $54.75 1.41%
Amgen Inc. (AMGN) $293.68 0.88%
Verizon Communications Inc. (VZ) $40.06 0.86%
Home Depot Inc. (HD) $366.24 0.85%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $287.64 -1.26%
Microsoft Corp. (MSFT) $415.47 -1.21%
Apple Inc. (AAPL) $187.18 -0.88%
Visa Inc. (V) $274.91 -0.55%
Procter & Gamble Co. (PG) $156.79 -0.40%
International Business Machines Corporation (CDI) (IBM) $185.74 -0.32%
Merck & Co. Inc. (MRK) $125.07 -0.30%
Unitedhealth Group Inc. (UNH) $517.23 -0.19%
Cisco Systems Inc. (CSCO) $50.04 -0.18%
McDonald's Corp. (MCD) $289.05 -0.15%

S&P 500 - Risers

CenturyLink Inc. (LUMN) $1.76 16.12%
VF Corp. (VFC) $17.44 14.02%
Diamondback Energy Inc. (FANG) $165.88 9.32%
Lincoln National Corp. (LNC) $27.28 6.40%
Mohawk Inds Inc. (MHK) $116.69 6.07%
Hanesbrands Inc. (HBI) $4.87 5.87%
Bread Financial Holdings, Inc. (BFH) $37.38 5.41%
Foot Locker Inc. (FL) $30.69 4.53%
Nordstrom Inc. (JWN) $19.98 4.50%
Albemarle Corp. (ALB) $120.71 4.26%

S&P 500 - Fallers

Motorola Solutions Inc (MSI) $320.44 -3.16%
Gartner Inc. (IT) $450.97 -2.71%
Digital Realty Trust (DLR) $143.62 -2.43%
Adobe Systems Inc. (ADBE) $613.58 -2.17%
S&P Global Inc Com (SPGI) $429.53 -1.91%
Electronic Arts Inc. (EA) $137.96 -1.88%
Kimco Realty Corp. (KIM) $19.72 -1.79%
Starbucks Corp. (SBUX) $95.57 -1.78%
Eaton Corporation plc (ETN) $273.10 -1.75%
Intuitive Surgical Inc. (ISRG) $382.00 -1.60%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $0.89 5.90%
Gen Digital Inc. (GEN) $21.95 2.83%
Charter Communications Inc. (CHTR) $298.77 2.62%
Henry Schein Inc. (HSIC) $75.57 2.51%
JD.com, Inc. (JD) $22.92 2.44%
Align Technology Inc. (ALGN) $303.45 2.39%
DENTSPLY Sirona Inc. (XRAY) $33.57 2.38%
Sirius XM Holdings Inc (SIRI) $5.01 2.35%
Expedia Group Inc. (EXPE) $134.17 2.33%
Paypal Holdings Inc (PYPL) $60.22 2.23%

Nasdaq 100 - Fallers

Tesla Inc (TSLA) $188.44 -2.65%
Adobe Systems Inc. (ADBE) $613.58 -2.17%
Asml Holdings N.V. (ASML) $929.35 -2.13%
Workday, Inc. (WDAY) $298.92 -1.96%
Electronic Arts Inc. (EA) $137.96 -1.88%
Starbucks Corp. (SBUX) $95.57 -1.78%
Intuitive Surgical Inc. (ISRG) $382.00 -1.60%
Broadcom Inc. (AVGO) $1,263.63 -1.54%
Autodesk Inc. (ADSK) $262.71 -1.49%
Microchip Technology Inc. (MCHP) $84.17 -1.49%