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On April 16, 2021, the New York Stock Exchange is seen in the Manhattan borough of New York City, New York, United States. Carlo Allegri/File Photo/REUTERS Reuters, July 13 – Investors digested a surge in consumer prices in June and profits from JPMorgan and Goldman Sachs that kicked off the quarterly reporting season on Tuesday, as the S&P 500 and Nasdaq fell after hitting new highs earlier in the session. The S&P 500 and Nasdaq both achieved new highs, but rapidly slipped into negative territory after a 30-year Treasury auction revealed lower demand than some investors had anticipated. Consumer prices in the United States increased by the most in 13 years last month, according to data, while so-called core consumer prices increased by 4.5 percent year over year, the most since November 1991. find out more Economists characterized the price increase, which was fueled by travel-rated services and used autos, as mostly temporary, echoing the views of Federal Reserve Chair Jerome Powell. “Any time interest rates rise, the stock market gets nervous, especially on a day like today,” Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey, explained. “One thing the CPI said, and another thing the bond auction said.” The S&P 500 growth index (.IGX) was up 0.1 percent after the noon fall, surpassing the value index’s (.IVS) 0.4 percent drop. “With growth beating value, the lesson is obviously that inflation is not a serious concern in the long run from a market viewpoint,” said Keith Buchanan, a portfolio manager with GLOBALT Investments in Atlanta. The majority of the S&P 500 sector indexes were lower, with real estate (.SPLRCR) and financials both losing roughly 1%. The S& find out more Goldman Sachs Group Inc (GS.N) dipped 1% after reporting quarterly earnings that beat expectations. find out more PepsiCo Inc (PEP.O) rose 2.4 percent after upgrading its full-year earnings projection, banking on stronger demand as COVID-19 limitations are eased. find out more According to Refinitiv data, S&P 500 earnings per share are predicted to jump 66 percent in the June quarter, with investors questioning how long Wall Street’s surge would persist after the benchmark index has risen about 17 percent this year. The focus now shifts to Fed Chair Jerome Powell’s congressional hearing on Wednesday and Thursday, where he will discuss rising pricing pressures and future monetary support. The Dow Jones Industrial Average (.DJI) was down 0.18 percent at 34,934.04 points in afternoon trading, while the S&P 500 (.SPX) was down 0.23 percent at 4,374.33. The Nasdaq Composite Index (.IXIC) fell -0.37% to 14,678.71. Conagra Brands Inc (CAG.N) fell 5% as the packaged foods business cautioned that higher raw material and ingredient costs would eat into profits this year more than previously anticipated. find out more Boeing Co (BA.N) slumped 3% after the Federal Aviation Administration announced late Monday that some 787 Dreamliners that have yet to be delivered had a new manufacturing quality issue. find out more On the NYSE, declining issues exceeded advancing ones by a 2.42-to-1 ratio, while on the Nasdaq, decliners were favored by a 2.87-to-1 ratio. The S&P 500 made 39 new 52-week highs while the Nasdaq Composite made 58 new highs and 56 new lows. Devik Jain and Shreyashi Sanyal contributed additional reporting from Bengaluru, and Cynthia Osterman edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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