finance
S&P 500 rises while Dow falls after US inflation data comes in below forecasts
The S&P 500 gained 0.4 percent on milder-than-expected June consumer prices. Oil prices stayed elevated and bank earnings exceeded forecasts.
Jul 14, 3:15 PM·1m read1 source
The Sydney Morning HeraldAudio version
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The S&P 500 rose 0.4 percent after US consumer prices increased 3.5 percent in June from a year earlier, below the 3.9 percent forecast and May’s 4.2 percent pace. The Dow Jones Industrial Average fell 56 points, or 0.1 percent, while the Nasdaq composite advanced 1.1 percent in mid-afternoon trade.
Traders cut the odds of a Federal Reserve rate increase at its July meeting to less than 13 percent from 42 percent the prior day.
President Donald Trump withdrew his threat, made the previous day, to impose a 20 percent charge on all cargo transiting the Strait of Hormuz. Brent crude settled at $84.48 per barrel after briefly exceeding $87, up 1.4 percent from Monday’s close. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo all reported second-quarter profits above analyst expectations.
Goldman Sachs shares rose 7.7 percent while Citigroup shares fell 5.6 percent. IBM shares dropped 24.5 percent after the company missed expectations in its software and infrastructure businesses. ” Micron Technology shares rose 4.8 percent and Nvidia shares gained 3.7 percent.
The 10-year Treasury yield fell to 4.58 percent from 4.62 percent. Japan’s Nikkei 225 index rose 0.7 percent and Shanghai stock indexes gained 1.4 percent after China reported exports jumped 27 percent in June.
