US close: Stocks mixed as consumer inflation slows

The Dow Jones Industrial Average fell 0.22% to close at 33,487.87, while the S&P 500 rose 0.24% to end at 4,129.20.

By the end of trading, the Nasdaq Composite was the biggest loser, declining 0.63% to finish at 12,179.55.

Investors were thumbing through the latest consumer inflation data, which showed prices rising at their slowest pace in two years.

The consumer price index (CPI) print had been eagerly awaited by market participants for clues on the Federal Reserve's next interest rate move.

On the currency front, the dollar was weaker against its major pairs, last slipping 0.06% on sterling to trade at 79.19p, while it dropped 0.19% against the euro to 91.05 euro cents.

It also declined against the yen, last falling 0.66% to change hands at JPY 134.34.

“It was Mary Poppins who told her bewildered charges that ‘well begun is half done’, and half done is pretty much where the Fed is when it comes to getting a grip on inflation in the US,” quipped Danni Hewson, head of financial analysis at AJ Bell.

“Today’s numbers might have come in cooler than had been expected, and the headline number might have fallen below 5% for the first time in two years, but there is still a yawning gulf between where we are and where US central bankers want to be.

“Core inflation has held steady from last month coming in at 5.5%, despite 10 consecutive interest rate hikes taking borrowing costs to a 16-year high.”

Consumer prices rise at slowest pace in two years

On the economic front, the cost of living in the US increased as expected in April, though it reached the slowest pace of gains in two years in the process, according to the Department of Labor.

The country's consumer price index, adjusted for seasonal variations, grew at a month-on-month rate of 0.4%, in line with market expectations.

On an annual basis, the rate of increase fell to 4.9% from 5.0%.

Core CPI, meanwhile, which excludes food and energy, rose 0.4% month-on-month and 5.5% year-on-year, which was a drop from the 5.6% pace seen in the prior month.

Food prices remained unchanged compared to the previous month, while energy prices increased 0.6%.

Prices for used cars and trucks rebounded by 4.4% at the core level.

However, the rate of increase in housing prices slowed further, rising by 0.4% over the month following a 0.6% rise in March.

Prices for new vehicles decreased 0.2%, while transportation services and medical care services fell by 0.2% and 0.1%, respectively.

Ian Shepherdson at Pantheon Macroeconomics judged that core inflation using the Federal Reserve's preferred price gauge appeared to be breaking lower.

“Core services prices ex-rent rose only 0.11% in April, the smallest increase since July last year,” he said.

“This means the equivalent measure in the core PCE deflator, which the Fed is now watching very closely, is set for a third straight relatively benign reading.

“The trend appears to be breaking to the downside, and if that continues - as we expect - and the labour market softens, as implied by all the leading indicators, the Fed’s line of no rate cuts this year will soon become indefensible.”

Across the pond, inflation in Germany declined slightly in April, although high food prices prevented it from falling further.

According to the Destatis federal statistics office, the country’s CPI increased 7.2% in April compared to the same month last year, down from the 7.4% print in March.

The outcome matched Destatis' initial flash estimate, as well as market expectations.

NYT publisher slides as Wendy’s serves up decent quarter

In equities, shares of the New York Times Company fell 7.76%, driven by the publisher's announcement of slowed second quarter ad growth.

Walt Disney was meanwhile down 1.02%, ahead of the entertainment giant’s scheduled second-quarter results due after the closing bell in New York.

On the upside, burger peddler the Wendy's Company added 1.04% following better-than-expected first-quarter sales, profits and like-for-like figures.

Reporting by Josh White for Sharecast.com.

DOW JONES INDUSTRIAL AVERAGE -73.94 (-0.22%) 33,487.87

RISERS
Salesforce +1.82% $204.85
Microsoft Corporation +1.73% $312.31
Apple +1.04% $173.56
International Business Machines +0.7% $122.02
Cisco Systems +0.52% $46.71
Walgreens Boots Alliance +0.48% $31.59
Merck & Co +0.4% $117.90
Johnson & Johnson +0.37% $161.65
Procter & Gamble +0.21% $154.03
Coca-Cola Company +0.17% $63.50

FALLERS
American Express -3.06% $148.68
Chevron Corporation -1.28% $157.09
Nike -1.27% $123.51
Walt Disney Co -1.02% $101.14
Visa -0.85% $231.27
Goldman Sachs Group -0.68% $322.55
Home Depot -0.53% $289.03
Boeing -0.52% $200.84
Intel Corporation -0.43% $29.97
Dow Inc -0.41% $53.45

S&P 500 +10.03 (+0.24%) 4,129.20

RISERS
Alphabet +4.43% $121.11
Amazon.com +3.3% $110.14
Procter & Gamble +0.21% $154.03
Accenture +2.05% $268.89
Salesforce +1.82% $204.85
Eli Lilly & Company +1.76% $435.92
Nextera Energy +1.73% $76.89
Microsoft Corporation +1.57% $311.82
Broadcom +1.25% $626.27
Nvidia Corporation +1.11% $288.87

FALLERS
Walt Disney Co -4.21% $97.88
Nike -1.47% $123.26
Chevron Corporation -1.28% $157.09
Bank of America Corporation -1.25% $27.32
Exxon Mobil Corporation -1.19% $107.85
Visa -0.85% $231.27
Danaher Corporation -0.74% $233.43
Wells Fargo & Company -0.67% $38.28
Philip Morris International -0.58% $95.10
Tesla Inc -0.53% $168.26

NASDAQ 100 -90.53 (-0.68%) 13,201.11

RISERS
Datadog +8.05% $86.00
Illumina +7.84% $209.49
Zscaler +6.13% $116.79
Alphabet Class A +4.1% $111.75
Alphabet Class C +4.02% $112.28
Amazon.com +3.35% $110.19
MercadoLibre +3.27% $1,288.92|
Atlassian Corporation +3.21% $137.42
CrowdStrike Holdings +2.97% $133.80
KLA Corporation +2.83% $386.38

FALLERS
Airbnb Inc -10.92% $113.19
PayPal Holdings -3.83% $63.38
Warner Bros Discovery -2.76% $13.04
Moderna -2.2% $130.83
Ross Stores -2.05% $101.95
Marriott International -1.88% $175.63
Lucid Group -1.65% $7.16
Micron Technology -1.54% $59.99
JD.com Inc -1.46% $35.10
Paccar Inc -1.36% $72.33