Stocks Look to Extend Streak
The S&P 500 was little changed Tuesday following a big rally, as investors digested a softer-than-expected inflation report and looked to build on the sharp gains seen in the previous session.
The Dow Jones Industrials lost 117.48 points, after soaring to dizzy heights Monday, falling to 42,292.62
The much-broader index gained 36.23 points to 5,880.42.
The NASDAQ Composite climbed 213.76 points, or 1.1%, to 18,922.10.
Johnson & Johnson’s stock fell nearly 2% at the market’s open. The stock is up more than 6% year to date.
A proposed rule from the Centers for Medicare & Medicaid Services is bad news for Johnson & Johnson’s Darzalex Faspro therapy, according to Leerink Partners. The draft says combination treatments are protected for 13 years from the date that the original compound was approved, not when the combination therapy was cleared for use.
The consumer price index, a broad measure of goods and services costs across the U.S. economy, increased 2.3% on an annualized basis in April. Economists polled by Dow Jones expected inflation to remain at a 2.4% rate last month on a year-over-year basis. Excluding food and energy, so-called core inflation ran at a 2.8% annual rate, which matched consensus estimates and was also unchanged from the prior month.
That report comes after Wall Street enjoyed a huge rally Monday after the U.S. and China agreed to slash steep tariffs for 90 days, raising hopes a trade war won’t tip the economy into a recession.
Prices for the 10-year Treasury lost some ground, raising yields to 4.48% from Monday’s 4.47%. Treasury prices and yields move in opposite directions
Oil prices gained 79 cents to $62.74 U.S. a barrel.
Prices for gold recovered $4.40 to $3,232.40 U.S.
