S&P 500 and Nasdaq: US Indices Mixed as Stock Market Weighs Earnings, CPI Data

Economic Indicators - The December consumer price index (CPI) report showed core CPI rose 0.2% month-over-month and 2.6% year-over-year, both below pre-market estimates of 0.3% and 2.8% respectively [1] - The monthly headline CPI increased by 0.3% in December, resulting in an annual rate of 2.7%, which was in line with economists' forecasts [1][2] Federal Reserve Outlook - The steady inflation and a stable jobs market are likely to lead the Federal Reserve to maintain interest rates during their first meeting of the year on January 28-29 [2] - Fed funds futures are currently pricing in two quarter-point cuts starting in June 2024 [2] Earnings Season - The earnings season commenced with JPMorgan Chase reporting better-than-expected results for the December quarter, although the stock did not show significant movement [3] - Delta Airlines experienced a 4% decline in premarket trading due to mixed earnings results [3][4] Sector Performance - Defense stocks, particularly L3Harris Technologies, surged 13% after announcing plans for an IPO of its missile solutions business in partnership with the U.S. Defense Department [5] - Chip manufacturers Intel and AMD saw stock increases following an upgrade to overweight by KeyBanc, citing a potential upside of over 30% due to a memory supercycle and strong data center demand [5] - Health sciences company Revvity reported better-than-expected preliminary results, contributing to its stock strength early in the session [5]