US open: Stocks mixed following CPI reading

By Sharecast News

Sharecast News | 12 Jan, 2023

Wall Street trading got off to a mixed start on Thursday as investors digested last month's all-important consumer price index.

As of 1510 GMT, the Dow Jones Industrial Average was up 0.23% at 34,051.69, while the S&P 500 slipped 0.03% to 3,968.35 and the Nasdaq Composite came out the gate 0.28% weaker at 10,900.53.

The Dow opened 78.68 points higher on Thursday, extending gains recorded in the previous session.

December's CPI print was in focus early on Thursday, with the data revealing that the cost of living in the US had slipped a tad more than expected last month.

According to the Department of Labor, the annual rate of headline consumer prices fell from 7.1% for November to 6.5% in December, beating consensus estimates for a print of 6.6%. At the core level, which strips out the volatile food and energy components, CPI was up by 5.7% year-on-year, versus 6.0% in the month before and in line with economists' forecasts. Investors will use the report to assess the outlook for the Federal Reserve's rate-hiking campaign, with declining inflation likely to lead the central bank to halt its rate-rising campaign in the spring.

Elsewhere on the macro front, Americans filed unemployment claims at a decelerated clip in the seven days ended 7 January, hitting their lowest level in more than three months. According to the Labor Department, initial jobless claims fell by 1,000 to 205,000, well and truly short of the 215,000 figures expected on the Street, adding to recent evidence of a tight labour market.

Still to come, the Federal Government's monthly budget statement will follow at 1900 GMT.

No major corporate earnings were slated for release on Thursday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walt Disney Co. (DIS) $97.74 1.46%
Boeing Co. (BA) $209.90 0.90%
Chevron Corp. (CVX) $176.75 0.88%
Caterpillar Inc. (CAT) $252.21 0.59%
Dow Chemical Co. (DOW) $57.61 0.05%
Verizon Communications Inc. (VZ) $41.20 0.04%
Honeywell International Inc. (HON) $0.00 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Merck & Co. Inc. (MRK) $111.04 -0.03%
International Business Machines Corporation (CDI) (IBM) $145.07 -0.13%