Tuesday September 14, 2021

// September 14th, 2021 // Daily News


Dow gives up earlier gain, falls more than 100 points despite better-than-feared inflation report

U.S. stock indexes gave up earlier gains Tuesday, falling back into their September doldrums despite a better-than-feared inflation reading.

The Dow Jones Industrial Average lost about 115 points, or 0.3%. The S&P 500 fell 0.2% and the Nasdaq Composite dipped 0.1%.

Stocks linked to the economic recovery led the turn lower 30 minutes after the open. Bank of America led financial shares lower. General Electric took industrial shares into the red. Investors crowded into some of their favorite tech bastions with Microsoft and Amazon higher.

The August consumer price index, while still showing a significant jump in inflation, came in less than feared. August CPI jumped 0.3% month-to-month, or 5.3% from a year earlier, below the 0.4% increase and 5.4% annual gain expected respectively by economists polled by Dow Jones.

The less volatile core reading excluding food and energy costs showed just a slight gain, up 0.1% and below the 0.3% consensus increase expected by economists.

“The important piece of the news is that we’re showing sequential improvement, which is exactly what we need to see,” said Art Hogan, chief market strategist at National Securities.

The Federal Reserve is monitoring key economic indicators like inflation readings as it decides when to taper its pandemic-era easy monetary policy. The Fed begins a two-day policy meeting on September 21.

“I believe the Fed will talk about tapering in September and not announce it until the November meeting and then put it in place before the end of the year,” Hogan said.

Apple shares ticked slightly higher ahead of an event Tuesday where it’s expected to announce new versions of the iPhone, AirPods and Apple Watch.

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