Stocks Lower in Early U.S. Trading After Hot Producer Price Data
U.S. Stocks Dip on Wholesale Price Increase
U.S. stocks edged lower in early New York trading on Friday after fresh data showed that wholesale prices in the world’s biggest economy rose at a faster-than-anticipated rate in January.
Market Indices in Decline
By 09:55 ET (14:55 GMT), the benchmark had dipped by 0.3%, the tech-heavy had shed 0.8%, and the blue-chip had fallen by 0.3%.
Producer Price Index Surges
The U.S. producer price index increased 0.3% last month following a revised decline of 0.1% in December, Labor Department figures showed on Friday. Economists had predicted a rise of 0.1%.
Impact on Treasury Yields and Equities
U.S. Treasury yields, which typically move inversely to prices, ticked higher following the report, weighing on equities. The numbers were the latest sign of sticky U.S. inflation, a trend that has all but eradicated bets for imminent interest rate cuts by the Federal Reserve.
Rate Commentary and Inflation Trend
On Friday, traders will keeping an eye out for further rate commentary from Richmond Fed President Thomas Barkin, Fed Vice Chair for Supervision Michael Barr, and San Francisco Fed President Mary Daly. In a note, analysts at ING said they expect to hear more from Fed policymakers in the coming days about an anticipated “bumpy” path to the U.S. central bank’s 2% inflation target. “[B]ut we still think this [is] the true direction of travel,” the analysts added.
Individual Stocks Performance
In individual stocks, Coinbase (NASDAQ:) posted fourth-quarter income that topped Wall Street estimates, sending shares sharply higher, as the approval of spot-Bitcoin exchange-traded funds boosted activity on the crypto exchange platform. The company reported earnings per diluted share of $1.04 in the three months ended on Dec. 31, above expectations for a loss of $0.01 per share, according to LSEG data cited by Reuters. Trading volumes climbed to $154B from $145B in the same period a year earlier. Elsewhere, DoorDash (NASDAQ:) shares dropped after the delivery firm unveiled a wider-than-projected fourth-quarter loss due in part to elevated labor costs, while semiconductor equipment maker Applied Materials (NASDAQ:) popped on a positive second-quarter revenue outlook fueled by strong demand for advanced chips used in artificial intelligence.
Oil Prices Firm Up
Oil prices firmed on Friday. WTI Crude expiring in April had gained 0.2% to $83.00 a barrel, while Brent Crude had climbed by 0.3% to $77.84 per barrel by 09:38 ET. Crude prices were set for mild weekly gains after clocking volatile swings through the week.
Final Note
Oliver Gray contributed to this report.
