US open: Stocks sharply higher following December's CPI reading

(Sharecast News) - Wall Street stocks were sharply higher early on Wednesday as market participants digested last month's consumer price index. As of 1530 GMT, the Dow Jones Industrial Average was up 1.74% at 43,257.97, while the S&P 500 advanced 1.84% to 5,950.15 and the Nasdaq Composite came out the gate 2.35% firmer at 19,492.03.

The Dow opened 739.69 points higher on Wednesday, extending gains recorded in the previous session following the publication of December's cooler-than-expected producer price index.

After last month's PPI print rose by just 0.2% month-on-month, all eyes turned to December's CPI reading on Thursday, with the Federal Reserve's preferred inflation gauge rising quicker than expected at the tail end of 2024 as energy prices spiked higher.

According to the Department of Labor, headline CPI rose at a month-on-month pace of 0.4% and by 2.9% year-on-year, driven by a 4.3% surge in petrol costs. The year-on-year increase was up from the 2.7% clip seen in November and ahead of the 2.8% consensus forecast. Core CPI, which strips out volatile food and energy prices, increased by 0.2% on the month and 3.2% on the year.

The yield on the benchmark 10-year Treasury note dropped sharply on the back of the report and was sitting roughly 10 basis points lower at 4.686% at the open.

Elsewhere on the macro front, mortgage applications surged by 33.3% in the week ended 10 January, according to the Mortgage Bankers Association of America, erasing the previous four weekly declines with the sharpest increase seen since 2020.

Finally, the NY Empire State manufacturing index fell to -12.6 in January, down from 2.1 in December, according to the New York Federal Reserve, missing forecasts for an increase to 3 and marking a return to a contraction in manufacturing activity.

In the corporate space, JPMorgan Chase reported Q4 earnings and revenues that came in ahead of expectations, while Wells Fargo said net interest income was set to grow, Goldman Sachs beat on both the top and bottom lines, and Citigroup shares traded higher after coming in better than consensus estimates with its Q4 earnings.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $606.15 6.06% American Express Co. (AXP) $310.42 3.35% Home Depot Inc. (HD) $404.64 3.02% Apple Inc. (AAPL) $238.22 2.12% Microsoft Corp. (MSFT) $424.29 2.07% Visa Inc. (V) $315.43 2.05% Travelers Company Inc. (TRV) $241.46 1.91% Caterpillar Inc. (CAT) $377.45 1.58% International Business Machines Corporation (CDI) (IBM) $221.04 1.51% Amgen Inc. (AMGN) $271.00 1.46%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $537.28 -1.19% Salesforce.Com Inc. (CRM) $323.09 -0.14% Walgreens Boots Alliance, Inc. (WBA) $12.23 -0.12% Dowdupont Inc. (DWDP) $0.00 0.00% Verizon Communications Inc. (VZ) $38.36 0.20% Boeing Co. (BA) $167.40 0.23% McDonald's Corp. (MCD) $282.55 0.34% Walmart Inc. (WMT) $91.13 0.37% Johnson & Johnson (JNJ) $145.38 0.44% Merck & Co. Inc. (MRK) $100.13 0.48%

S&P 500 - Risers

CenturyLink Inc. (LUMN) $5.75 8.38% Edison International (EIX) $62.95 7.74% Goldman Sachs Group Inc. (GS) $606.15 6.06% Citigroup Inc. (C) $77.93 6.02% Bank Of New York Mellon Corp. (BK) $80.42 5.90% Wells Fargo & Co. (WFC) $75.35 5.84% CBRE Group Inc (CBRE) $131.91 5.60% Intuitive Surgical Inc. (ISRG) $568.76 5.54% Micron Technology Inc. (MU) $102.73 5.51% Sempra Energy (SRE) $82.11 5.12%

S&P 500 - Fallers

Elevance Health Inc. (ELV) $381.99 -2.84% AbbVie Inc (ABBV) $172.40 -1.80% McKesson Corp. (MCK) $584.36 -1.58% CIGNA Corp. (CI) $281.19 -1.35% Kroger Co. (KR) $59.14 -1.30% Centene Corp. (CNC) $62.59 -1.28% Unitedhealth Group Inc. (UNH) $537.28 -1.19% Hormel Foods Corp. (HRL) $29.70 -1.02% Abbott Laboratories (ABT) $111.99 -0.91% Church Dwight Co Inc. (CHD) $104.36 -0.87%

Nasdaq 100 - Risers

Intuitive Surgical Inc. (ISRG) $568.76 5.54% Micron Technology Inc. (MU) $102.73 5.51% NetEase Inc. Ads (NTES) $100.91 5.08% Tesla Inc (TSLA) $416.38 5.05% Qurate Retail Inc. (QRTEA) $0.35 4.69% Western Digital Corp. (WDC) $65.29 4.06% KLA-Tencor Corp. (KLAC) $725.19 3.41% Synopsys Inc. (SNPS) $506.98 3.39% Meta Platforms Inc. (META) $613.79 3.29% Align Technology Inc. (ALGN) $217.26 3.23%

Nasdaq 100 - Fallers

Hasbro Inc (HAS) $56.28 -0.60% Hologic Inc. (HOLX) $69.79 -0.58% Walgreens Boots Alliance, Inc. (WBA) $12.23 -0.12% Biomarin Pharmaceutical Inc. (BMRN) $63.76 -0.08% Intuit Inc. (INTU) $623.52 -0.05% Celgene Corp. (CELG) $0.00 0.00% Dish Network Corp. (DISH) $5.77 0.00% Alexion Pharmaceuticals Inc. (ALXN) $0.00 0.00% Activision Blizzard Inc. (ATVI) $94.42 0.00% Xilinx Inc. (XLNX) $0.00 0.00%