US stocks muted following mixed inflation data

NEW YORK - The Dow declined and the Nasdaq rose on Tuesday as markets digested United States inflation data that contained a mixture of reassuring and problematic signs.

The consumer price index reading rose 6.4 per cent in January from a year ago, according to Labour Department data.

Although this marks the smallest annual increase since October 2021, the level is well above policymakers’ 2 per cent target.

Higher prices for food, shelter, energy and other items suggest that the hoped-for “disinflation” has not arrived, said Mr Steve Sosnick, chief strategist at Interactive Brokers.

But he described sentiment as broadly bullish.

“Right now, the momentum in the stock market is generally positive and stock traders are looking for an excuse to rally,” Mr Sosnick said.

The Dow Jones Industrial Average finished down 0.5 per cent at 34,089.27.

The broad-based S&P 500 edged down less than 0.1 per cent to 4,136.13, while the tech-rich Nasdaq Composite Index gained 0.6 per cent to 11,960.15.

Among individual companies, Marriott International jumped 4 per cent after reporting higher profits on a 33 per cent surge in revenues.

Chief executive Anthony Capuano said booking trends have stayed “robust” despite recession worries.

Boeing climbed 1.3 per cent after it sealed a deal to sell Air India 220 planes, as part of an expansion by the Indian carrier.

Palantir shot up 21.2 per cent after the data analytics company announced its first profitable quarter since it was founded nearly 20 years ago.

But Restaurant Brands International fell 2.7 per cent as profits lagged analyst estimates. AFP