Wall Street Indexes Brave Higher and Look Beyond Inflation Reports Amid Positive Earnings

Barry Adams
13 Feb, 2025
New York City

Benchmark indexes in New York edged higher as investors looked beyond two inflation reports in as many days.

The S&P 500 index gained 0.1%, and the Nasdaq Composite advanced 0.3%, and the yield on 10-year Treasury notes remained elevated. 

Producer price inflation in January slowed from December, but the level was still ahead of market estimates.

Producer inflation slowed to 0.4% in January from the upwardly revised 0.5% in December, the U.S. Bureau of Labor Statistics reported Thursday. 

On an annual basis, producer price inflation was unchanged at 3.5%, matching the upwardly revised rate in December. 

Core inflation, which excludes food and energy inflation, advanced 0.3% from the previous month and gained 3.6% from a year ago.

Thursday's producer price inflation report follows Wednesday's hotter-than-expected consumer price inflation report, confirming that the Federal Reserve is not likely to lower interest rates anytime soon. 

Moreover, inflation is likely to remain elevated as the Trump administration doubles down on imposing more import taxes, or tariffs, on shipments from key trading partners in Europe, Asia, and North America.

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 6,059.56, the Nasdaq Composite edged up 0.3% to 19,710.78, and the Russell 2000 index was up 0.5% to 2,267.31.

The yield on 2-year Treasury notes edged lower to 4.36%, 10-year Treasury notes decreased to 4.56%, and 30-year Treasury bonds declined to 4.81%.

WTI crude oil decreased $0.71 to $70.65 a barrel, and natural gas prices edged higher by $0.13 to $3.69 a thermal unit.

Gold increased by $4.62 to $2,910.52 an ounce, and silver edged down by $0.24 to $32.03.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 0.19 to 107.78 and traded at a two-year high.

 

U.S. Stock Movers

Dutch Bros Inc. soared 31% to $85.10 after the coffee chain operator reported better-than-expected quarterly results, and the company's full-year outlook was ahead of expectations.

The Trade Desk plunged 32% to $83.60 after the digital advertising company estimated weaker-than-expected results in the current quarter. 

Reddit, Inc. declined 7.8% to $199.87 after the social media platform operator reported weaker-than-expected quarterly results. 

MGM Resorts soared 13.5% to $39.0 after the casino company reported a 1% decline in consolidated revenue in the fourth quarter, but results were ahead of market expectations.