Stocks end higher in choppy session, oil tops $82
CPI Index rose 7% in December, highest since 1982
Lavorgna: 'Let's not get crazy' about Fed hike frenzy
Former White House National Economic Council chief economist Joseph Lavorgna comments on Federal Reserve chair Jerome Powell's intentions of raising interest rates.
U.S. stocks ended the session higher in a choppy session after the Federal Reserve's Beige Book signaled the economy is still facing headwinds, including supply chain shortages and a tight labor market. This followed the jump in consumer prices, which hit the highest level since 1982.
The Dow Jones Industrial Average, reversed losses closing over 39 points higher or 0.05%, while the S&P 500 and Nasdaq Composite rose 0.3% and 0.2%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
This as the yield on the 10-Year Treasury slipped to 1.72%.
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The Fed's regional snapshot of the economy suggested most regions are dealing with the crunch. "Districts indicated growth continued to be constrained by ongoing supply chain disruptions and labor shortages" the report noted.
Earlier, the consumer price index rose 7% annually, the highest level since 1982, as reported by the Bureau of Labor Statistics. Monthly, the gain was 0.5%, driven by shelter and used cars and trucks.
If you factor out volatile food and energy costs, the core consumer price index rose 0.6% last month. On an annual basis, core CPI jumped 5.5% in December. That’s up from 4.9% in November. On Thursday, the Producer Price Index is also expected to surge 9.8%.
Oil rose to the $82-per-barrel level.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 71.04 | -0.57 | -0.80% |
The report follows Federal Reserve Chairman Jerome Powell's remarks Tuesday when he said policy "in all likelihood" will return to normal as bond purchases and other economic stimulus winds down. Speaking before the Senate Banking Committee, he said ultra-low rates might be raised earlier than planned if necessary to cool inflation that is at a four-decade high.
In stocks, shares of Biogen fell after Medicare said Tuesday it will limit coverage of a $28,000-a-year Alzheimer’s drug only to patients taking the medication as part of clinical trials.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BIIB | BIOGEN INC. | 164.23 | +3.60 | +2.24% |
Shares of Dish Network rose after the New York Post reported that DirecTV and Dish Network are once again holding talks about a possible merger.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DISH | NO DATA AVAILABLE | - | - | - |
The SPDR Financial exchange-traded fund hit a fresh high ahead of key bank earnings due Friday from JPMorgan, Citigroup and Wells Fargo.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLF | FINANCIAL SELECT SECTOR SPDR ETF | 51.34 | +0.08 | +0.16% |
| JPM | JPMORGAN CHASE & CO. | 249.72 | -0.07 | -0.03% |
| C | CITIGROUP INC. | 70.87 | +0.71 | +1.01% |
| WFC | WELLS FARGO & CO. | 76.17 | -1.04 | -1.35% |
In auto news, General Motors is launching a new marketplace for used cars called CarBravo.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.59 | +0.09 | +0.16% |
GM LAUNCHES USED CAR MARKETPLACE
In Asia, the Nikkei 225 in Tokyo rose 1.9%, the Hang Seng in Hong Kong gained 2.8% and China's Shanghai Composite Index gained 0.8%.
GAS PRICES RISE AS OIL REMAINS 'STUBBORNLY STRONG'
The World Bank cut its forecast for global economic growth this year to 4.1% from 4.3% due in part to supply chain disruptions that fueled inflation. The agency estimates the world economy grew by 5.5% in 2021.
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FOX Business' Ken Martin and The Associated Press contributed to this report.