US open: Stocks trade higher despite another red hot inflation report

dl exchange place wall st street pl new york city nyc ny nyse stock exchange dow jones sp nasdaq finance dollar dollars us usa united states of america — Exchange PlaceSharecast photo / Josh White

Wall Street stocks were in the green early on Wednesday as market participants did their best to shrug off some red hot inflation reports.

As of 1515 BST, the Dow Jones Industrial Average was up 0.08% at 32,248.49, while the S&P 500 was 0.04% firmer at 4,399.05 and the Nasdaq Composite came out the gate 0.53% stronger at 13,441.84.

The Dow opened 28.13 points higher on Wednesday, taking a bite out of losses recorded in the previous session.

News from yesterday that US inflation had hit a fresh 40-year high in March was again in focus early on Wednesday as, according to the Labor Department, consumer price inflation jumped to 8.5% - its fastest annual rate of growth since 1981 - due to surging energy prices due to Russia's invasion of neighbouring Ukraine.

Analysts had been expecting a figure of 8.4%. On the month, prices were up 1.2% in March, versus a 0.8% increase in February and marking the biggest jump since 2005. The gasoline index surged 18.3%, accounting for more than half the total monthly increase. Food prices rose 1%, while shelter prices were 0.5% higher.

Turning to today's producer price index, wholesale prices rose at their fastest clip in over a decade last month as energy prices continued to rise. According to the Department of Labor, so-called final demand prices jumped at a month-on-month pace of 1.4% in March, pushing the annual rate of increase to 11.2% - the biggest jump since records began in 2010.

Energy prices jumped by 5.7%, led by a 20.4% jump in diesel fuel prices, following a 7.5% rise during the previous month and food prices increased by 2.4%. Total goods prices, meanwhile, rose by 2.3%.

Oil prices were also in focus as futures ticked slightly higher after China relaxed a number of Covid-19 lockdowns that were expected to impact demand, with international benchmark Brent crude rising 1.64% to $106.36 per barrel, while West Texas Intermediate crude futures inched ahead 1.34% to $101.95 per barrel.

In the corporate space, the first-quarter earnings season kicked off on Wednesday, with investment manager BlackRock posting a nearly 22% rise in first-quarter profits as investors poured more money into its various funds, while Delta Air Lines reported a quarterly loss, but forecast a return to profit in the current quarter as air travel demand hits record heights.

Elsewhere, JPMorgan Chase's quarterly earnings fell short of Wall Street estimates, while shares in retailer Bed, Bath & Beyond sunk after the firm detailed a surprise quarterly loss.

On the macro front, mortgage applications in the United States decreased 1.30% week-on-week in the seven days ended 8 April, according to the Mortgage Bankers Association of America, as the average home loan rate in the US topped 5% for the first time since November 2018.

Dow Jones - Risers

Boeing Co. (BA) $180.85 2.59%
Nike Inc. (NKE) $126.91 1.50%
American Express Co. (AXP) $177.57 1.15%
Intel Corp. (INTC) $46.95 0.97%
Home Depot Inc. (HD) $309.12 0.92%
Walt Disney Co. (DIS) $132.01 0.89%
Caterpillar Inc. (CAT) $218.56 0.86%
Walmart Inc. (WMT) $154.49 0.82%
Amgen Inc. (AMGN) $251.80 0.70%
Chevron Corp. (CVX) $170.12 0.66%