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Dow edges back from record high as stock-market investors parse biggest CPI increase since 2008

U.S. stock indexes on Tuesday morning edged slightly lower from Monday's record closes, as investors assessed a hotter-than-expected consumer inflation report for June, which suggests to some that the Federal Reserve may neeed to consider removing some of its monetary policy measures to avoid an overheated post-COVID economy. The consumer price index leaped 0.9% last month, the government said Tuesday. The last time prices rose that fast was in 2008. The cost of used cars accounted for more than one-third of the increase. The Dow Jones Industrial Average fell less than 0.1% at 34,973, the S&P 500 index was down 0.1%, while the Nasdaq Composite Index retreated less than 0.1% at 14,725. The Labor Department reported that the consumer-price index leapt 0.9% last month. The cost of used cars accounted for more than one-third of the increase. Economists polled by Dow Jones had forecast a 0.5% increase. The rate of inflation in the 12 months ended in June climbed to 5.4% from 5% in the prior month. The inflation data come amid the unofficial start of second-quarter earnings. In corporate news, shares of J.P. Morgan Chase & Co. (JPM) fell Tuesday, after the banking giant reported second-quarter a profit that more than doubled and revenue that beat expectations, even as markets revenue fell 30%, while net interest income fell below forecasts. Meanwhile, shares of PepsiCo Inc. (PEP) rallied after the beverage and snacks company reported second-quarter profit and revenue that rose well above expectations and provided an upbeat full-year outlook.

-Mark Decambre; 415-439-6400; AskNewswires@dowjones.com

 

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07-13-21 0939ET

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