Dow declines following US PPI data

The Dow Jones Industrial Average slipped back to 39,320.00 on Tuesday after US Producer Price Index (PPI) inflation came in higher than expected. Market sentiment recovered and dragged the DJIA back to even. However, a double-header of US Consumer Price Index (CPI) inflation and Retail Sales are still loaded for Wednesday.

US PPI inflation rose to 0.5% MoM in April, over and above the forecast 0.3% and rebounding from the previous month’s -0.1% decline. Core annualized PPI came in at the expected 2.4% YoY, rising from the previous period’s 2.1% which was revised down from 2.4%. Next up will be the US’ data headliner for the week with Wednesday’s CPI inflation print. US CPI inflation is expected to hold steady in April at 0.4% MoM, while YoY headline CPI inflation is expected to drop slightly to 3.4% from 3.5%.

About half of the securities that make up the Dow Jones Industrial Average are in the red on Tuesday. Visa Inc. fell -1.5%, shedding -4.2 points and trading below $276.00 per share, closely followed by Walmart Inc. which shed -1.25% and fell below $60.00 per share. Goldman Sachs Group Inc. gained around 1.6%, climbing seven points to trade above $460.00 per share. Boeing Co. and Intel Corp. are battling for second place, up around 1.3% apiece on Tuesday and trading near $181.00 and $31.00 per share, respectively.