US open: Stocks trade lower as annual CPI hits three-year high

(Sharecast News) - Major indices were in the red early on Tuesday as investors digested April's consumer price index report.

As of 1500 BST, the Dow Jones Industrial Average was down 0.51% at 49,449.17, while the S&P 500 shed 0.37% to 7,385.10 and the Nasdaq Composite came out of the gate 0.53% softer at 26,134.82.

The Dow opened 255.30 points lower on Tuesday, more than reversing gains recorded in the previous session despite Donald Trump's rejection of Iran's latest proposal to end their conflict.

Tuesday's primary focus looked set to be April's consumer price index report, which revealed US consumer prices rose 0.6% in April on a seasonally adjusted basis, 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 to a three-year high of 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, 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 were also drawing an amount of investor attention at the open, with West Texas Intermediate jumping 3.25% early on Tuesday to $101.26 a barrel, while Brent crude rose 3.24% to $107.59, 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.

Still to come, April's monthly Federal budget statement will be released at 1900 BST.

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 slated for release on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $98.57 2.82%

Verizon Communications Inc. (VZ) $47.65 1.08%

Microsoft Corp. (MSFT) $409.05 0.93%

Merck & Co. Inc. (MRK) $112.02 0.80%

Apple Inc. (AAPL) $292.91 0.78%

Chevron Corp. (CVX) $185.79 0.77%

Procter & Gamble Co. (PG) $144.04 0.70%

Johnson & Johnson (JNJ) $222.73 0.69%

McDonald's Corp. (MCD) $276.28 0.66%

Visa Inc. (V) $326.46 0.63%

Dow Jones - Fallers

Intel Corp. (INTC) $125.40 -2.43%

Caterpillar Inc. (CAT) $914.05 -1.81%

Goldman Sachs Group Inc. (GS) $931.07 -1.46%

Salesforce.Com Inc. (CRM) $174.43 -1.36%

JP Morgan Chase & Co. (JPM) $297.40 -0.87%

Boeing Co. (BA) $236.79 -0.81%

Amgen Inc. (AMGN) $331.06 -0.57%

Unitedhealth Group Inc. (UNH) $382.92 -0.31%

American Express Co. (AXP) $312.11 -0.07%

S&P 500 - Risers

Dxc Technology Company (DXC) $9.36 5.49%

Skyworks Solutions Inc. (SWKS) $68.31 2.94%

Cisco Systems Inc. (CSCO) $98.57 2.82%

Diamondback Energy Inc. (FANG) $197.44 2.61%

Nvidia Corp. (NVDA) $220.76 2.57%

Target Corp. (TGT) $122.58 2.45%

FMC Technologies Inc. (FTI) $72.77 2.28%

Becton, Dickinson & Company (BDX) $146.12 2.26%

Nektar Therapeutics (NKTR) $78.54 2.05%

Lamb Weston Holdings, Inc. (LW) $41.44 2.05%

S&P 500 - Fallers

Under Armour, Inc. (UA) $4.74 -19.47%

Under Armour Inc. Class A (UAA) $4.85 -19.23%

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

QUALCOMM Inc. (QCOM) $224.21 -7.29%

TripAdvisor Inc. (TRIP) $9.60 -6.60%

Intuitive Surgical Inc. (ISRG) $421.94 -5.22%

Ross Stores Inc. (ROST) $213.88 -4.91%

Adobe Systems Inc. (ADBE) $242.61 -4.22%

Booking Holdings Inc. (BKNG) $158.48 -3.84%

Lam Research Corp. (LRCX) $287.78 -3.74%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $442.63 4.41%

Skyworks Solutions Inc. (SWKS) $68.31 2.94%

Cisco Systems Inc. (CSCO) $98.57 2.82%

Nvidia Corp. (NVDA) $220.76 2.57%

Illumina Inc. (ILMN) $143.99 2.37%

JD.com, Inc. (JD) $30.86 2.07%

NetEase Inc. Ads (NTES) $117.81 2.03%

Monster Beverage Corp (MNST) $85.38 1.55%

Marriott International - Class A (MAR) $357.32 1.29%

Seagate Technology Plc (STX) $821.12 0.97%

Nasdaq 100 - Fallers

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

Vodafone Group Plc ADS (VOD) $14.77 -10.72%

QUALCOMM Inc. (QCOM) $224.21 -7.29%

Intuitive Surgical Inc. (ISRG) $421.94 -5.22%

Ross Stores Inc. (ROST) $213.88 -4.91%

Cognizant Technology Solutions Corp. (CTSH) $48.69 -4.35%

Workday, Inc. (WDAY) $121.63 -4.29%

Adobe Systems Inc. (ADBE) $242.61 -4.22%

Booking Holdings Inc. (BKNG) $158.48 -3.84%

Lam Research Corp. (LRCX) $287.78 -3.74%