US close: Stocks mixed following hotter than expected CPI

(Sharecast News) - Major indices delivered a mixed performance on Tuesday as investors digested April's consumer price index report.

At the close, the Dow Jones Industrial Average was up 0.11% at 49,790.56.17, while the S&P 500 shed 0.16% to 7,400.96 and the Nasdaq Composite saw out the session 0.71% weaker at 26,088.20.

The Dow closed 56.09 points higher on Tuesday, building on gains recorded in the previous session.

Tuesday's primary focus was April's consumer price index report, which revealed US consumer prices rose 0.6% in April, easing from the 0.9% increase recorded in March. According to the Bureau of Labor Statistics, energy remained a key driver of the monthly rise, with the index climbing 3.8% and accounting for more than 40% of the overall increase. Shelter costs also continued to push higher, rising 0.6% on the month. Food prices advanced 0.5%, with food at home up 0.7% and food away from home up 0.2%.

Core CPI, which strips out volatile food and energy prices, increased 0.4% in April. Categories posting gains included household furnishings and operations, airline fares, personal care, apparel and education. Declines were seen in new vehicles, communication and medical care. On an annual basis, headline CPI rose 3.8% in the 12 months to April, accelerating from 3.3% in March and the highest rate since May 2023., while core CPI increased 2.8% year‑on‑year, compared with 2.6% in the prior month. The energy index was up 17.9% over the year, while food prices rose 3.2%.

Oil prices also drew an amount of investor attention on Tuesday, with West Texas Intermediate jumping 4.11% to $102.10 a barrel, while Brent crude rose 3.18% to $107.52, after Donald Trump criticised the month‑old ceasefire between the US and Iran as "unbelievably weak" and "on massive life support" following his rejection of what he called an unacceptable counterproposal from Tehran.

Iran's latest offer was said to include demands for war reparations, full sovereignty over the Strait of Hormuz, the release of frozen assets and the lifting of sanctions.

Elsewhere on the macro front, US small‑business sentiment was generaly flat in April, according to the National Federation of Independent Business' small business optimim index, which came in at 95.9, little changed from March's 11‑month low of 95.8 and just shy of consensus forecasts of 96.1. The index remained below its long‑term 52‑year average of 98 for a second straight month, reflecting continued caution among business owners. The NFIB's uncertainty index eased by four points to 88, though it stayed well above its historical average of 68, while the employment index declined for a second month. Firms also reported an uptick in both actual and planned price increases.

In the corporate space, e-commerce giant eBay rejected an audacious $55.5bn bid from video game retailer GameStop, calling the offer "neither credible nor attractive". GameStop made a surprise unsolicited cash and stock offer of $125 a share earlier this month, with chief executive Ryan Cohen stating that eBay - worth around four times more than GameStop - could "be a legit competitor to Amazon" under his leadership. However, in a letter to Cohen published on Tuesday, eBay chair Paul Pressler said that following a review by company advisors, the board had opted to reject the approach.

No major corporate earnings were released on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $396.39 3.11%

Cisco Systems Inc. (CSCO) $99.29 3.03%

Coca-Cola Co. (KO) $80.03 1.74%

Dow Chemical Co. (DOW) $39.43 1.73%

JP Morgan Chase & Co. (JPM) $304.88 1.63%

Verizon Communications Inc. (VZ) $47.93 1.48%

Walt Disney Co. (DIS) $106.16 1.38%

Johnson & Johnson (JNJ) $224.26 1.28%

Apple Inc. (AAPL) $294.80 1.27%

Merck & Co. Inc. (MRK) $112.37 0.98%

Dow Jones - Fallers

Intel Corp. (INTC) $120.61 -5.94%

Salesforce.Com Inc. (CRM) $171.31 -3.48%

International Business Machines Corporation (CDI) (IBM) $219.22 -1.94%

Caterpillar Inc. (CAT) $912.14 -1.58%

Microsoft Corp. (MSFT) $407.77 -0.69%

Boeing Co. (BA) $236.87 -0.56%

Home Depot Inc. (HD) $310.46 -0.30%

Nike Inc. (NKE) $42.35 -0.09%

3M Co. (MMM) $143.21 -0.09%

S&P 500 - Risers

Humana Inc. (HUM) $295.35 7.69%

Centene Corp. (CNC) $59.31 5.23%

Huntington Ingalls Inds Inc Wi (HII) $333.56 4.98%

Zimmer Biomet Holdings Inc (ZBH) $83.37 4.76%

CF Industries Holdings Inc. (CF) $130.39 4.75%

Arista Networks Inc. (ANET) $142.54 4.48%

Amphenol Corp. (APH) $127.87 4.41%

Stryker Corp. (SYK) $294.45 4.20%

CenturyLink Inc. (LUMN) $8.67 3.96%

National Oilwell Varco Inc. (NOV) $20.54 3.89%

S&P 500 - Fallers

Under Armour Inc. Class A (UAA) $5.03 -16.86%

Under Armour, Inc. (UA) $4.90 -16.67%

QUALCOMM Inc. (QCOM) $210.31 -13.04%

TripAdvisor Inc. (TRIP) $9.45 -8.92%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Cognizant Technology Solutions Corp. (CTSH) $47.73 -6.93%

Intel Corp. (INTC) $120.61 -5.94%

LKQ Corporation (LKQ) $26.85 -5.59%

Adobe Systems Inc. (ADBE) $240.83 -5.29%

Corning Inc. (GLW) $198.24 -4.37%

Nasdaq 100 - Risers

JD.com, Inc. (JD) $31.49 3.62%

Illumina Inc. (ILMN) $145.70 3.59%

Tesla Inc (TSLA) $433.45 3.06%

Cisco Systems Inc. (CSCO) $99.29 3.03%

Vertex Pharmaceuticals Inc. (VRTX) $448.29 2.82%

Nvidia Corp. (NVDA) $220.78 2.36%

Costco Wholesale Corp. (COST) $1,021.88 2.22%

eBay Inc. (EBAY) $110.40 2.16%

Monster Beverage Corp (MNST) $85.87 1.89%

Gilead Sciences Inc. (GILD) $134.94 1.79%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

QUALCOMM Inc. (QCOM) $210.31 -13.04%

Vodafone Group Plc ADS (VOD) $15.10 -8.82%

Workday, Inc. (WDAY) $118.62 -7.40%

Cognizant Technology Solutions Corp. (CTSH) $47.73 -6.93%

Intel Corp. (INTC) $120.61 -5.94%

Adobe Systems Inc. (ADBE) $240.83 -5.29%

Liberty Global plc Series A (LBTYA) $11.61 -4.99%

Liberty Global plc Series C (LBTYK) $11.28 -4.97%

Autodesk Inc. (ADSK) $234.87 -3.96%