A cooler-than-expected December producer inflation report failed to ignite lasting gains on Wall Street Tuesday, reflecting lingering concerns about persistently high inflation among investors.
Early session advances across major indices faded into modest losses by midday trading in New York, as market participants exercised caution ahead of Wednesday's pivotal Consumer Price Index report and key fourth-quarter earnings from top Wall Street banks.
The Producer Price Index rose 3.3% year-over-year in December, accelerating from November's 3% increase but missing the 3.4% forecast. On a monthly basis, producer prices climbed 0.2%, slowing from November's 0.4% rise and falling short of the 0.3% consensus estimate.
Core PPI, which excludes volatile food and energy prices, increased 3.5% annually, matching November's pace but undershooting expectations of 3.8%. On a month-to-month basis, core inflation stagnated, showing zero growth compared to November's 0.2% increase, and coming in below forecasts for a 0.3% gain.
Bond yields continued to climb, underscoring persistent inflationary pressure. The 30-year Treasury yield advanced to 5%, its highest level since October 2023 and marking territory not seen since August 2007.
After a three-day rally, crude oil prices cooled. West Texas Intermediate fell 1% to $78 per barrel, as investors locked in recent gains.
Utilities and financials emerged as the session's strongest performers, while healthcare stocks were the largest drag on the market. Eli Lilly & Co. (NYSE:LLY) plummeted 7.5% after the company issued a weaker-than-expected fourth-quarter sales forecast for its weight-loss drug Zepbound.
Peer Novo Nordisk A/S (NYSE:NVO) slid 5% in sympathy.
CEO Dave Ricks revealed that Eli Lilly anticipates regulatory approval for its oral weight-loss treatment, orforglipron, by 2026, with pivotal data expected in mid-2025.
Bitcoin (CRYPTO: BTC) rose 1.5% on Tuesday, bouncing back after three days of largely flat trading.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Russell 2000 | 2,194.61 | 0.0% |
| Dow Jones | 42,241.81 | -0.1% |
| S&P 500 | 5,818.04 | -0.3% |
| Nasdaq 100 | 20,704.24 | -0.4% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) eased 0.4% to $579.14.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.2% down to $422.07.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.6% to $502.89.
- The iShares Russell 2000 ETF (NYSE:IWM) inched 0.1% higher to $217.45.
- The Utilities Select Sector SPDR Fund (NYSE:XLU) outperformed, up 0.8%; the Health Care Select Sector SPDR Fund (NYSE:XLV) lagged, down 1.8%.
Tuesday’s Stock Movers
- Chinese stocks rallied amid regulatory reassurance on markets. Shares of JD.com Inc. (NASDAQ:JD) rose 4.6%, followed by gains in Baidu Inc. (NASDAQ:BIDU) and PDD Holdings Inc. (NASDAQ:PDD), up 2.5% and 2.2%, respectively.
- Boeing Co. (NYSE:BA) fell over 3% after announcing on Tuesday that it delivered 57 commercial aircraft in the fourth quarter of 2024, a sharp decline from 116 deliveries in the previous quarter.
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