U.S. stocks slip after hot inflation report, earnings

2021-07-14 04:46

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NEW YORK, July 13 (Xinhua) -- U.S. stocks retreated on Tuesday as investors parsed a key inflation report and newly-released corporate earnings.

The Dow Jones Industrial Average fell 107.39 points, or 0.31 percent, to 34,888.79. The S&P 500 was down 15.42 points, or 0.35 percent, to 4,369.21. The Nasdaq Composite Index dropped 55.59 points, or 0.38 percent, to 14,677.65.

Ten of the 11 primary S&P 500 sectors ended in red, with real estate down 1.32 percent, leading the laggards. Technology rose 0.44 percent, the lone gaining group.

The above moves followed a hotter-than-expected inflation report.

U.S. Department of Labor reported on Tuesday that the consumer price index (CPI), a gauge of inflation, increased by 0.9 percent in June, exceeding the 0.5 percent advance forecast by economists. The figure also represented the biggest increase since 2008. The annualized rise in inflation was 5.4 percent in June.

"Another huge month for inflation numbers, another month where excluding this and that makes it look transitory, and another month where the Fed's patience will be tested," Chris Low and Will Compernolle, economists at FHN Financial, said in a note on Tuesday.

"Members of the FOMC (Federal Open Market Committee) who already think it's time to slow things down by setting a taper timeline could find new ammunition in this report," they said.

On the earning side, shares of JPMorgan Chase slipped even after the bank giant posted a profit for the second quarter. Shares of Goldman Sachs also dipped despite its strong earnings.

U.S. drink and snack giant PepsiCo delivered better-than-anticipated second-quarter earnings and revenue, sending the stock up more than 2 percent.

U.S.-listed Chinese companies traded mostly higher with eight of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on an upbeat note.
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