Dow Slips for 2nd Straight Day on Inflation Numbers - InvestingChannel

Dow Slips for 2nd Straight Day on Inflation Numbers

The Dow Jones Industrial Average fell Wednesday as traders absorbed a hotter-than-expected August core inflation print.

The 30-stock blue-chip index listed lower 70.46 points to close Wednesday at 34,575.53.

The S&P 500 index regained 5.54 points to 4,467.44.

The NASDAQ index moved positive 39.96 points to 13,813.58.

3M was the biggest laggard in the Dow list, dropping more than 5%. Caterpillar shares were lower by more than 2%.

August’s core inflation print in the consumer price index increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%.

Federal Reserve officials focus more on the core number as it provides a better indication of where inflation is heading over the long term.

Meanwhile, the headline numbers rose 0.6% last month, and were up 3.7% from a year ago. Economists surveyed by Dow Jones were looking for respective increases of 0.6% and 3.6%.

Wall Street has mostly priced in a pause in rate hikes at the Fed’s meeting next week. Fed funds futures pricing data as of Wednesday morning indicate a 97% probability of rates remaining the same.

Prices for the 10-year Treasury regained former strength, lowering yields to 4.25% from Tuesday’s 4.27%. Treasury prices and yields move in opposite directions.

Oil prices shed eight cents to $88.76 U.S. a barrel.

Gold prices faded $4.10 to $1,931.00 U.S. an ounce.

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