US open: Stocks mixed after US inflation rises more than expected
Updated : 16:07
US stocks were mixed on Friday as oil prices fell and US inflation came in stronger than estimated.
The Dow Jones Industrial fell 0.34% and the S&P 500 dipped 0.30% but the Nasdaq rose 12% at 1521 GMT.
Oil prices slid after data from the Energy Information Administration on Thursday showed US crude inventories rose by 2.1m barrels last week to a peak of 504.1m barrels. It marked the third week of record highs in the past month and added to concerns about the global oversupply.
West Texas Intermediate crude dropped 3.4% to $29.74 per barrel and Brent slipped 2.9% to $33.29 per barrel at 1519 GMT.
US inflation rose more than expected in January as the fall in energy prices eased, the Bureau of Labor Statistics revealed on Friday. The consumer price index increased 1.4% year-on-year last month, beating analysts’ estimates for 1.3% growth and marking a considerable pick-up from December’s 0.7% gain.
“The pick-up in core CPI inflation to a three-and-a-half-year high of 2.2% in January, from 2.1%, illustrates that rising domestic price pressures won’t allow the Federal Reserve to leave interest rates at near-zero levels for that much longer.”
The dollar was up 0.54% against the pound but fell 0.07% against the euro and 0.38% against the yen.
In corporate news, Deere & Co. was weaker after it posted a drop in net income for the first quarter and downgraded its outlook for the full year.
CommScope’s shares rallied despite the company announcing it swung to a loss in the fourth quarter.
Applied Materials surged after the chip equipment provider sounded an upbeat note on its profit outlook.
TrueCar plunged as the car-shopping website posted results and revenue outlook that missed analysts’ expectations.
Weight Watchers International rallied after a study by the Indiana University School of Medicine showed that Weight Watchers could help prevent diabetes.
Nordstrom Inc. was under the cosh after the company reported fourth quarter earnings that trailed estimates.