US stocks hover around flatline as tech continues wobble; Alphabet shines
U.S. stocks were hovering around the flatline Tuesday, as a wobble in tech weighed on the broader market, a day ahead of key inflation data.
At 12:55 ET (17:55 GMT), the Dow Jones Industrial Average fell 20 points, or 0.1%, while the S&P 500 index traded largely flat and the NASDAQ Composite gained 0.2%. Oracle pressures tech sector, but Alphabet shines
Oracle (NYSE:ORCL ) tumbled over 8%, pressuring the broader tech sector after the cloud firm fiscal Q2 earnings missed lofty street estimates, amid increased competition in the sector.
Alphabet Inc Class A (NASDAQ:GOOGL ) was a bright spot in tech, climbing 4% after launching its Willow quantum chip. CPI data awaited for more rate cues
The focus this week is squarely on US consumer price index inflation data, due on Wednesday, which could influence the Federal Reserve at its monetary policy meeting later this month.
Headline CPI is expected to increase slightly to 2.7% from 2.6% year-on-year, while core CPI , which excludes volatile food and energy items, is expected to remain at 3.3%.
While inflation had fallen steadily earlier in 2024, it turned more sticky in recent months amid resilience in the US economy, sparking some uncertainty over the outlook for interest rates.
Markets are still holding out for a 25-basis-point rate cut by the Federal Reserve next week. But the longer-term outlook for rates has now turned more uncertain, with expectations of inflationary policies under incoming President Donald Trump adding to the mix.
Elsewhere, Eli Lilly (NYSE:LLY ) stock was flat after the drugmaker announced a new $15 billion share buyback and hiked its dividend.
Alaska Air (NYSE:ALK ) stock rose 13% after the carrier raised its fourth-quarter profit forecast, owing to robust travel demand and improved pricing. The airline also provided full-year 2025 earnings guidance that topped Wall Street estimates.
(Peter Nurse, Ambar Warrick contribued to this article.)
Source: Investing.com
