THE Dow declined and the Nasdaq rose yesterday as markets digested US inflation data that contained a mixture of reassuring and problematic signs. 

The consumer price index reading rose 6.4% 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% target.

Higher prices for food, shelter, energy and other items suggest that the hoped-for “disinflation” has not arrived, said 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,” Sosnick said.

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

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

Among individual companies, Marriott International jumped 4.0% after reporting higher profits on a 33% surge in revenues. 

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

Boeing climbed 1.3% 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% 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% as profits lagged analyst estimates. – AFP, February 15, 2023.