United States stocks rise ahead of inflation, retail sales data

Marco Green
March 14, 2018

General Electric rose 2.2 percent and was the biggest boost to the Dow.

Broadcom gained 3.6 percent while shares in Qualcomm were flat.

The Consumer Price Index (CPI) for all urban consumers increased 0.2 per cent in February on a seasonally adjusted basis, in line with market consensus, the US Labor Department reported on Tuesday.

However, the S&P and the Dow have almost reclaimed those losses.

The Dow Jones Industrial Average was down 171.58 points, or 0.68 per cent, to 25,007.03. The S&P 500.SPX is just 3 percent below the record highs hit on January 26 and the Dow.DJI is 4.8 percent away from its peak. S&P 500 e-minis ESc1 rose 5 points and Nasdaq 100 e-minis NQc1 gained 27.5 points.

Persistent concern of a global trade war, after President Donald Trump implemented 25% tariff on steel imports and 10% on aluminium imports to the USA, also continued to weigh on investor sentiment.

The tech-heavy Nasdaq, however, gained around 0.6 percent, helped in part by what traders read as further signs of official disapproval of Broadcom's $117 billion bid for USA graphics chipmaker Qualcomm.

Investors will pore over the next round of data on consumer prices and retail sales due this week for signs of rising price pressure. The VIX Volatility Index was higher at 15.78 for a gain of 1.14 points or 7.79%.

Oclaro jumped 25 percent and was the most traded stock after laser and optical fibre specialist Lumentum Holdings said it would buy the optical components producer for US$1.7 billion.

Lumentum's shares rose 1 percent.

April WTI crude oil fell 1.1% to settle at $61.36/bbl following Friday's 3%-plus advance.

Other reports by Click Lancashire

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