4:05pm: Investors shrug off inflation reading
Data showing persistent inflation in the US didn’t stop the three major stock indexes closing higher on Tuesday.
The Nasdaq led the gains, adding 1.5% at 16,265 points. The S&P 500 added 1.1% at 5,175 points, a new record high, while the Dow Jones was up 0.6% at 39,005 points.
Southwest Airlines Co (NYSE:LUV) finished the day almost 15% lower after unveiling plans to reduce its capacity and financial outlook due to delays at airplane manufacturer Boeing.
On the other hand, software and cloud computing firm Oracle Corp (NYSE:ORCL, ETR:ORC) added 11.7% on better-than-expected quarterly results.
11:53am: Nasdaq leads gains at midday
Tech stocks are riding to the rescue again for markets, with NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) leading the charge.
With the chipmaking star up 5%, and other megacaps like Microsoft, Amazon and Meta Platforms up over 2%, the Nasdaq has reversed earlier losses and is up 1.1% now at over 16,195.
A big riser among smaller names is Rumble Inc has offered to buy TikTok, with a letter from CEO Chris Pavloski to ByteDance CEO Shou Zi Chew declaring the online video platform is ready to "acquire and operate TikTok in the US".
With Washington threatening to ban TikTok if it remains under Chinese ownership, Pavloski said: "In the event that ByteDance divests its ownership in TikTok, Rumble is ready to join a consortium with other parties seeking to acquire and operate TikTok inside the United States. Specifically, we are ready to serve as a cloud technology partner."
9.53am: Sliding at the open
Wall Street stocks opened higher but then quickly slid in the red.
At pixel-time the Dow Jones is down 0.1% at 38,736.85, the S&P 500 is just a couple of points below flat at 5,115.9 and the Nasdaq Composite is down 0.1% at 15,997.6.
Most of the Magnificent Seven tech giants are up, apart from Tesla, which is down 1.2%, and Apple, which is just below flat.
On the Dow, fallers are led by Boeing, down 2.9% with others including Chevron, Intel and Nike.
8.33am: Stocks heading for mixed start
US stocks are heading for a mixed start after inflation data came in hotter than expected, which sent Wall Street stock futures into a tizzy.
Futures markets see the Dow Jones starting just below flat, down 0.02%, but Nasdaq 100 futures are up 0.4% and the S&P 500 is up 0.2%.
All the tech megcaps - Apple, Microsoft, Nvidia and Tesla etc - are heading higher in pre-market trading.
The US consumer price index (CPI) for February printed at 315.57, 3.2% higher than a year ago, up from 3.1% and higher than the 3.1% consensus forecast.
Compared to the prior month February's CPI was up 0.4%, up from 0.3% as expected.
Core CPI, which excludes fuel and food prices, was up 0.4% month-on-month, higher than the 0.3% expected.
Year on year, core CPI was up 3.8%, easing from 3.9% but not as much as the 3.7% expected.
Earlier, before the CPI numbers, Bank of America joined the chorus of investment banks raising S&P 500 yer-end forecasts as economic optimism spreads.
The bank raised its S&P 500 earnings per share estimates to $250, up from the previous forecast of $235.
Earlier this month the bank had raised its year-end prediction to 5,400, equating to roughly a 5% gain from current levels.
In company news, Manchester United Plc shares are heading 4% higher premarket after it published record results and said new co-owner Jim Ratcliffe will help the club “deliver success on the pitch”.
Sales during the group’s second quarter, which covered the three months to 31 December 2023, reached a record £225.8 million as the football team continues to enjoy the financial benefits of UEFA Champions League participation.
Tesla Inc (NASDAQ:TSLA, ETR:TL0) boss Elon Musk will reportedly visit the company's German gigafactory on Wednesday, after an arson attack last week left the plant without power for days.
Power was restored on Monday following the attack on a nearby power pylon, which ultimately halted production at the Tesla plant. Shares in the electric carmaker are up 1% in pre-market trading.
Airbnb Inc (NASDAQ:ABNB, ETR:6Z1) said it is banning the use of indoor security cameras in its listings globally as it continues to “prioritize the privacy of the community”.