The combination of a weaker-than-expected reading on the key monthly retail sales report alongside faster growth in producer prices knocked stocks off their perch in early trading in New York.
Nevertheless, if the latter did indeed show “bottlenecks everywhere”, according to Ian Shepherdson, chief economist at Pantheon Macroeconomics, the former was offset by upwards revisions to figures for the preceding month.
Even so, as of 1718 BST, the Dow Jones Industrials was trading 152.24 points or 0.44% lower to 34,243.5, alongside a 10.22 point or 0.24% dip for the S&P 500 to 4,245.13.
The Nasdaq Composite meanwhile was down 86.13 points or 0.61% at 14,087.66.
It wasn’t just about the latest economic data on Tuesday, investors were also waiting on the results of the Federal Reserve’s policy meeting the next day, which made the latest inflation readings all the more important.
Yet according to Bank of America, 72% of the fund managers who took part in a survey, the results of which were published on Tuesday morning, described the current inflation pressures as “transitory”.
Fund managers’ biggest ‘overweight’ by sectors? Banks.
On that note, overnight JP Morgan’s Jamie Dimon said he was unconvinced that inflation was transitory.
Dimon told a conference that the lender was “hoarding” cash in anticipation of higher interest rates because there was a “very good chance” that inflation was here to stay.
Elsewhere on the corporate front, Boeing stock was up almost 1% following reports that Brussels and Washington had agreed a five-year truce in their long-running dispute about each others’ subsidies to their respective aircraft makers.
Exxon Mobil was also in the spotlight, rising nearly 3%, after analysts at Bank of America told clients the oil major was likely to hike its dividend before the end of 2021.
In the background, front month West Texas Intermediate crude oil futures were adding 1.13% to $71.68 a barrel on the NYMEX.
Dow Jones – Risers
Chevron Corp. (CVX) $109.41 1.33%
American Express Co. (AXP) $165.36 0.95%
Boeing Co. (BA) $246.01 0.35%
Procter & Gamble Co. (PG) $135.25 0.25%
Verizon Communications Inc. (VZ) $57.31 0.22%
Visa Inc. (V) $234.11 0.01%
Dowdupont Inc. (DWDP) $30.52 0.00%
Honeywell International Inc. (HON) $230.94 0.00%
Travelers Company Inc. (TRV) $153.10 -0.10%
Microsoft Corp. (MSFT) $259.56 -0.13%
Dow Jones – Fallers
JP Morgan Chase & Co. (JPM) $154.39 -2.02%
Home Depot Inc. (HD) $303.96 -1.73%
Goldman Sachs Group Inc. (GS) $367.16 -1.54%
Nike Inc. (NKE) $130.04 -1.00%
Salesforce.Com Inc. (CRM) $244.02 -0.91%
Caterpillar Inc. (CAT) $217.04 -0.90%
Walt Disney Co. (DIS) $176.70 -0.83%
Amgen Inc. (AMGN) $239.41 -0.74%
Dow Chemical Co. (DOW) $66.53 -0.64%
3M Co. (MMM) $200.15 -0.60%
S&P 500 – Risers
Exxon Mobil Corp. (XOM) $63.57 2.42%
Synchrony Financial (SYF) $49.70 2.18%
Micron Technology Inc. (MU) $82.08 1.98%
Diamondback Energy Inc. (FANG) $88.11 1.94%
Alliance Data Systems Corp. (ADS) $112.01 1.93%
Msci Inc. (MSCI) $499.68 1.82%
National Oilwell Varco Inc. (NOV) $17.11 1.81%
Textron Inc. (TXT) $68.27 1.67%
Occidental Petroleum Corp. (OXY) $28.75 1.66%
Helmerich & Payne Inc. (HP) $33.63 1.54%
S&P 500 – Fallers
Freeport-McMoRan Inc (FCX) $36.50 -7.55%
Alexandria Real Estate Equities Inc. (ARE) $183.81 -5.02%
Macy’s Inc. (M) $17.99 -4.28%
Nucor Corp. (NUE) $99.08 -3.53%
Take-Two Interactive Software Inc. (TTWO) $181.26 -2.94%
Activision Blizzard Inc. (ATVI) $96.27 -2.93%
Sl Green Realty Corp. (SLG) $81.04 -2.74%
Nordstrom Inc. (JWN) $33.33 -2.73%
Albemarle Corp. (ALB) $163.80 -2.70%
Gap Inc. (GPS) $31.58 -2.65%
Nasdaq 100 – Risers
Micron Technology Inc. (MU) $82.08 1.98%
Cintas Corp. (CTAS) $358.43 1.46%
DENTSPLY Sirona Inc. (XRAY) $65.49 1.27%
PACCAR Inc. (PCAR) $92.01 1.03%
Vodafone Group Plc ADS (VOD) $18.85 1.02%
Henry Schein Inc. (HSIC) $78.13 0.90%
CSX Corp. (CSX) $97.98 0.71%
T-Mobile Us, Inc. (TMUS) $146.28 0.70%
Incyte Corp. (INCY) $83.15 0.62%
Dollar Tree Inc (DLTR) $100.81 0.60%
Nasdaq 100 – Fallers
Take-Two Interactive Software Inc. (TTWO) $181.26 -2.94%
Activision Blizzard Inc. (ATVI) $96.27 -2.93%
NetEase Inc. Ads (NTES) $111.46 -2.37%
Electronic Arts Inc. (EA) $145.18 -2.27%
Vertex Pharmaceuticals Inc. (VRTX) $190.92 -1.99%
Fastenal Co. (FAST) $51.69 -1.97%
Tesla Inc (TSLA) $605.64 -1.95%
Hologic Inc. (HOLX) $62.20 -1.88%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $330.93 -1.74%
American Airlines Group (AAL) $22.61 -1.65%
