US open: Wall Street opens on a flat note after CPI data

US equities were flat early on Tuesday, as investors digested inflation data and a report on industrial production.

Shortly before 1500 GMT, the Dow Jones Industrial Average was unchanged at 17482.81, while the S&P 500 and the Nasdaq were one point lower and three points higher respectively.

CPI edges higher

On the macroeconomic front, US consumer prices rose for the first time in three months in October.

According to the Labor Department, CPI declined 0.2% month-on-month last month, up from the 0.2% decline recorded in September and in line with expectations.

On a year-on-year basis, the rate of growth rose from 0.0 to 0.2% in October, slightly above analysts’ estimates for a 0.1% gain.

“This morning’s data confirm our suspicion that some of the weakness in nominal October core retail sales was indeed price-related,” said analysts at Barclays.

“Lower prices imply slightly stronger consumption in real terms.”

Meanwhile, according to figures released by the Federal Reserve, output fell 0.2% last month compared with a 0.2% decline in September and analysts’ expectations for a 0.1% gain.

Manufacturing production rose 0.4% month-on-month rebounding from a 0.1% decline in the previous month and above analysts’ expectations for a 0.2% gain, although the report added overall production was held back by a drop in mining and utility output.

Market participants will also hear from a number of Federal Reserve officials, with Dallas Fed President Rob Kaplan speaking on economic conditions and Fed policy in Houston at 1700 GMT. Meanwhile, Fed governor Jerome Powell and Daniel Tarullo will speak at 1815 GMT and 2030 GMT respectively.

In company news, home fashion retailer TJX Companies rose 3.86% after posting better-than-expected third quarter sales, while retailing giant Wal-Mart will report ahead of the bell, while Home Depot gained 2.04% after posting solid quarterly sales.

Retailing giant Wal-Mart reported ahead of the opening bell and gained 2.51% after its quarterly beat expectations.

Meanwhile, regulatory filings showed David Einhorn boosted its stake in Apple and General Motors. Shares in the stocks gained 0.16% and 0.54% respectively.

Elsewhere, most Asian stocks advanced as they recovered from the widespread losses they suffered in the previous session, while European equities were firmly in the back, as energy stocks continued to gain.

The dollar was broadly flat against the yen and lost 0.14% pound but hit a fresh seven-month high against the euro, gaining 0.15% against the European currency, as investors speculate the terrorist attacks in Paris might see the European Central Bank loosen up its monetary policy next month.

Gold spot lost 0.31% to $1,079.43, while oil prices slid, with West Texas Intermediate falling 0.72% to $41.44 a barrel, while Brent lost 0.41% to $44.38 a barrel.