Stock market today: Dow pops, Nasdaq slips as focus turns to CPI inflation report

Published On Jan 14, 2025, 4:51 PM

US stocks had a mixed closing on Tuesday amid investor reactions to a less-than-expected rise in producer prices, a precursor to the consumer price index report expected Wednesday. The Dow Jones rose about 0.5%, while the S&P 500 gained 0.1% and the Nasdaq fell 0.2%. Investors are awaiting a critical consumer price report that is expected to show core inflation remaining sticky, which may influence Federal Reserve's interest rate strategies. Additionally, discussions around new tariffs by the incoming Trump administration could further affect inflation and market expectations.

Stock Forecasts

KBH

Positive

With the anticipation that the CPI will show persistent inflation, the Federal Reserve may maintain or increase interest rates, which could negatively impact market performance, particularly for stocks with high international exposure due to a strengthening dollar and increased costs from tariffs. Stocks like KB Home, which showed resilience in earnings despite market uncertainties, could see positive performance due to strong demand and operational adjustments.

LLY

Negative

As the healthcare sector feels pressure from underperforming drug sales, particularly Eli Lilly's disappointing sales forecast, this is likely to negatively influence healthcare stocks overall, leading to a lower expected growth trajectory for companies in this space.

JPM

Positive

JPMorgan has shown resilience and growth in share value amidst management shifts and a solid forecast for profits. This indicates a stable investment opportunity going forward, especially during earnings reports that could reflect continued strong banking performance despite economic challengers.

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