US stocks end little changed as earnings offset inflation data
bank earnings offset cooler-than-expected inflation news that buoyed hopes for interest-rate cuts from the Federal Reserve.
On Friday, data showed U.S. producer prices unexpectedly fell in December as the cost of goods such as food and diesel fuel declined, while prices for services were unchanged for a third consecutive month, in contrast to Thursday's hotter-than-expected consumer inflation reading.
Expectations for a rate cut of at least 25 basis points by the Fed in March moved up to 79.5%, according to CME's FedWatch Tool, from 73.2% in the prior session.
Friday's data also sent Treasury yields lower, although recent comments by some central bank officials have pushed back on any potential rate cuts.
«The PPI tells us something that is a little bit different than the CPI,» said Michael Green, chief strategist at Simplify Asset Management in New York.
«It raises the probability that the Fed has the free and clear to decide to cut interest rates and the equity market really doesn't care all that much as long as rates are not pushing significantly higher.»
The Dow Jones Industrial Average fell 118.04 points, or 0.31%, to 37,592.98. The S&P 500 gained 3.59 points, or 0.08 %, at 4,783.83 and the Nasdaq Composite rose 2.58 points, or 0.02%, to 14,972.76.
For the week, the Dow gained 0.34%, the S&P 500 rose 1.84% and the Nasdaq climbed 3.09%.
