NEW YORK: Wall Street stocks inched upwards early Wednesday following a benign wholesale inflation report and mostly good earnings from large banks, offsetting lingering worries about trade tariffs.
After the June consumer price index showed increased pricing pressure following US tariffs, the producer price index was unchanged on a month-on-month basis, beating analysts’ expectations and cooling from a 0.3 percent rise in May.
An uptick in goods prices was countered by a drop in services costs, the report said.
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 44,077.29.
US stocks mostly up after inflation data, Nvidia jumps
The broad-based S&P 500 also gained 0.1 percent to 6,250.78, while the tech-rich Nasdaq Composite Index was flat at 20,680.96.
Nationwide Financial Markets Economist Oren Klachkin rated the PPI a “downside surprise,” while warning that most of the tariff passthrough is still “ahead of us,” according to a note.
“However, with many strategies at companies’ disposal, the passthrough may be lower than initially anticipated,” Klachkin said.
Earnings from Goldman Sachs, Morgan Stanley and Bank of America all topped estimates. But shares were mixed after the reports, with analysts pointing to healthy rises in financial share prices in the period heading into the results.
Ford fell 1.5 percent after disclosing that it will account for $570 million in costs connected to fuel injectors in several models in three models from recent years, including Bronco Sport vehicles from 2021-2024.
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