US open: Stocks lower as hotter-than-expected PPI reading sparks selloff

(Sharecast News) - Major indices were firmly in the red early on Friday, the final trading day of February, as investors digested hotter-than-expected wholesale inflation figures from the Bureau of Labor Statistics.

As of 1515 GMT, the Dow Jones Industrial Average was down 1.51% at 48,750.28, while the S&P 500 shed 0.78% to 6,855.18 and the Nasdaq Composite came out of the gate 0.92% weaker at 22,667.88.

The Dow opened 748.92 points lower on Friday, easily erasing modest gains recorded in what was a mixed session for major indices following earnings from tech heavyweights Nvidia and Salesforce.

Market participants were zeroed-in on news that wholesale inflation picked up at a faster than accepted clip at start of the year, according to the Bureau of Labor Statistics, with producer prices rising more strongly than in the prior two months.

Core PPI, which strips out volatile food and energy prices, rose 0.8% in January, up from 0.6% in December and well above the 0.3% economists had pencilled in, while headline PPI increased 0.5%, also topping forecasts for a 0.3% gain and coming in slightly hotter than the prior month.

Over the full year, core wholesale prices were up 3.6%, while the headline index rose 2.9%, both running ahead of the Federal Reserve's 2% inflation target and underscoring persistent price pressures in the US economy.

Elsewhere on the macro front, the Institute for Supply Management's Chicago purchasing managers index increased to 57.7 in February, up from a reading of 54 in January and ahead of expectations for a modest decline to 52.8.

Finally, US construction spending increased by 0.3% month-on-month in December, according to delayed figures from the Census Bureau, following a 0.2% decrease in November, in line with expectations.

In the corporate space, Netflix has walked away from its offer to buy Warner Bros Discovery, sending its shares higher and leaving Paramount Skydance as the likely winner in the long running battle for the iconic Hollywood studio. The streaming giant refused to increase its $83bn, $27.75-per-share offer after Warner Bros said Paramount's latest �31-per-share bid was superior.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Amgen Inc. (AMGN) $384.76 1.49%

Procter & Gamble Co. (PG) $163.39 0.00%

Boeing Co. (BA) $229.56 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $393.56 -3.13%

Intel Corp. (INTC) $45.49 -2.06%

Cisco Systems Inc. (CSCO) $77.35 -1.66%

Apple Inc. (AAPL) $270.95 -1.23%

S&P 500 - Risers

DENTSPLY Sirona Inc. (XRAY) $14.39 12.12%

Netflix Inc. (NFLX) $92.60 9.96%

Illumina Inc. (ILMN) $130.69 7.80%

Apache Corp. (APA) $29.50 7.39%

Autodesk Inc. (ADSK) $242.38 4.81%

VeriSign Inc. (VRSN) $224.22 3.05%

CME Group Inc. (CME) $317.85 2.58%

CH Robinson Worldwide Inc (CHRW) $182.91 2.45%

J.B. Hunt Transport Services Inc. (JBHT) $227.60 2.37%

Diamondback Energy Inc. (FANG) $170.07 2.20%

S&P 500 - Fallers

United Airlines Holdings Inc (UAL) $107.56 -8.17%

Ipg Photonics Corp. (IPGP) $124.99 -7.60%

Nektar Therapeutics (NKTR) $65.99 -6.10%

Zions Bancorporation (ZION) $58.11 -5.25%

American Airlines Group (AAL) $13.18 -5.22%

Nvidia Corp. (NVDA) $179.98 -5.11%

Synopsys Inc. (SNPS) $412.87 -4.77%

Huntington Bancshares Inc. (HBAN) $16.83 -4.75%

NetApp Inc. (NTAP) $97.80 -4.69%

Dollar Tree Inc (DLTR) $124.16 -4.43%

Nasdaq 100 - Risers

DENTSPLY Sirona Inc. (XRAY) $14.39 12.12%

Netflix Inc. (NFLX) $92.60 9.96%

Illumina Inc. (ILMN) $130.69 7.80%

Autodesk Inc. (ADSK) $242.38 4.81%

Sirius XM Holdings Inc (SIRI) $21.63 2.59%

J.B. Hunt Transport Services Inc. (JBHT) $227.60 2.37%

Biomarin Pharmaceutical Inc. (BMRN) $61.77 1.91%

Verisk Analytics Inc. (VRSK) $203.55 1.91%

Incyte Corp. (INCY) $100.54 1.64%

Vertex Pharmaceuticals Inc. (VRTX) $486.72 1.48%

Nasdaq 100 - Fallers

Workday, Inc. (WDAY) $131.85 -5.28%

American Airlines Group (AAL) $13.18 -5.22%

Nvidia Corp. (NVDA) $179.98 -5.11%

Synopsys Inc. (SNPS) $412.87 -4.77%

Dollar Tree Inc (DLTR) $124.16 -4.43%

Micron Technology Inc. (MU) $409.40 -3.57%

Asml Holdings N.V. (ASML) $1,437.55 -3.54%

Automatic Data Processing Inc. (ADP) $211.33 -3.51%

Cadence Design Systems Inc. (CDNS) $290.53 -3.37%

Analog Devices Inc. (ADI) $347.71 -3.30%