CNBC Daily Open: U.S. stocks shrug off hot inflation numbers

This study is from today's CNBC Daily Open, our new, planetary markets newsletter. CNBC Daily Open brings investors up to velocity connected everything they request to know, nary substance wherever they are. Like what you see? You tin subscribe here.

U.S. ostentation is starting to wound again. But stocks mostly shrugged it off.

• January's U.S. consumer terms scale roseate 0.5%, higher than the 0.4% forecast by economists. On a year-over-year basis, prices accrued 6.4%, compared with the expected 6.2%. Egg prices were inactive sky-high.

• U.S. stocks closed Tuesday mixed. The Dow Jones Industrial Average and the S&P 500 edged lower, portion the Nasdaq Composite rose. After a affirmative trading day, Asia-Pacific shares mostly ended lower, with lone China's Shanghai Composite and Shenzhen Component remaining successful the green.

• Yields of U.S. Treasurys climbed aft a hotter-than-expected ostentation report. The 6-month Treasury, notably, surged to adjacent astatine 5.022%, its highest output since July 2007.

• Here's immoderate affirmative quality amid the downbeat data: Coca-Cola beat gross estimates. Airbnb reported an adjacent amended quarter, surpassing net expectations by astir 2 times.  

• PRO U.S. Treasury yields are popping again. The 10-year Treasury's output deed a five-week precocious this week, portion the 2-year has risen 0.41 percent points successful February alone. This is however pros would play the market.

January's hotter-than-expected CPI study formed a shadiness implicit U.S. markets yesterday.

Prices successful the U.S. past period accrued faster than economists had anticipated; they were pushed up by higher food, vigor and lodging costs. Yet adjacent the halfway CPI — which strips retired the much volatile nutrient and vigor prices — saw a monthly bump of 0.4% and a year-over-year leap of 5.6%. Both exceeded respective estimates of 0.3% and 5.5%.  

Is the disinflationary process — successful the words of Federal Reserve Chair Jerome Powell — inactive successful play successful the U.S.? January's halfway CPI of 5.6% is simply a tiny notch little than December's 5.7%, which means that prices are inactive tapering off. But conscionable barely.

U.S. markets reacted accordingly. Treasury yields rose, suggesting that investors are pricing successful higher involvement complaint hikes by the Fed. Stocks fell. The Dow slipped 0.46% and the S&P dipped 0.03%. However, the Nasdaq, traditionally the astir involvement rate-sensitive index, closed 0.57% higher, buoyed by a 7.51% surge successful Tesla and a 5.43% leap successful Nvidia.

Though stocks mostly fell, they were remarkably resilient. A squad astatine JPMorgan had forecast that the S&P would descend betwixt 0.75% to 1.5% should yearly CPI travel successful astatine 6.4%. The existent driblet successful the index: lone 0.03%.

The unusual disconnect betwixt enslaved markets and banal markets continues. Investors mightiness beryllium optimistic that user spending volition stay beardown adjacent amid rising prices — arsenic Coca Cola's net study indicated — hence allowing the system to support growing. As for that theory, Wednesday's U.S. retail income study volition enactment it to the test.

Subscribe here to get this study sent straight to your inbox each greeting earlier markets open.