S&P 500 Declined and Treasury Yields Advanced After Second Hot Inflation Report

Barry Adams
16 Feb, 2024
New York City

Benchmark indexes on Wall Street edged lower after the second inflation report showed persistent inflation and raised interest rate uncertainty. 

The S&P 500 index and the Nasdaq Composite lacked direction in early trading, and Treasury yields spiked after producer prices rose at a faster-than-expected pace in January. 

Producer prices, a measure of wholesale price inflation, in January rose 0.3% from the previous month and advanced 0.9% from a year ago, the U.S. Bureau of Labor Statistics reported Friday. 

The second inflation report follows the hotter-than-expected consumer price inflation report earlier this week. 

Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the bureau reported on Tuesday. 

The 10-year Treasury yield jumped above 4.3% and the 2-year Treasury yield advanced above 4.7% after the release of producer price inflation data. 

On the earnings front, investors reviewed results from Applied Materials, Coinbase, DoorDash, and Toast. 

  

U.S. indexes and yields

The S&P 500 index decreased 0.2% to 5,038.25, and the Nasdaq Composite rose 0.1% to 15,921.64. 

The yield on 2-year Treasury notes increased to 4.69%, 10-year Treasury notes inched up to 4.32%, and 30-year Treasury bonds edged down to 4.48%.

WTI crude oil decreased $0.27 to $77.83 a barrel, and natural gas prices increased 1 cent to $1.58 a thermal unit, a low last seen in September 2020.

Gold increased by $2.14 to $2,006.33 an ounce after the U.S. dollar gained in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.38.

 

U.S. Stock Movers

DoorDash declined 7.4% to $116.92 after the delivery company reported a wider-than-expected quarterly loss. 

Applied Materials soared 13.1% to $212.16 after the semiconductor equipment maker reported better-than-expected quarterly results.

Trade Desk jumped 17.6% to $89.50 after the digital advertising company reported better-than-expected quarterly sales and estimated a stronger-than-expected fiscal first quarter. 

Coinbase Global soared 14.5% to $189.25 after the crypto trading firm reported better-than-expected fourth-quarter results.

Toast soared 9% to $20.93 after the restaurant point-of-sale system developer reported fourth-quarter revenue of $1.04 billion and a net loss of 7 cents per share.