Publications
Partners
New York - US stocks opened mixed on Wednesday after data showed a weak rise in inflation but stronger industrial production, as traders kept a wary eye on Europe's renewed sovereign debt problems.
The Dow Jones Industrial Average edged up 2.01 points (0.02%) to 11 478.55 in opening trades, after reaching on Tuesday its highest level in 27 months.
The S&P 500 index, a broader measure of the market, was down 1.85 points (0.15%) to 1 239.74, while the tech-rich Nasdaq lost 4.45 points (0.16%) to 2 623.42.
Shortly before the opening bell, a string of economic data painted yet again a mixed picture of the US economy.
US consumer prices rose a mere 0.1% in November, the Labor Department said, much less than economists had forecast, penciling in a 0.2% rise after the same increase in October.
Excluding food and energy prices, which can be volatile month-to-month, so-called "core" CPI increased 0.1%, matching expectations, after three months of flat readings.
The tepid inflation rate falls far short of the goals of the Federal Reserve, which on Tuesday kept lending rates unchanged at record lows and reaffirmed its massive monetary stimulus policies to boost the recovery.
The Fed is concerned that the slow rise in prices could become deflationary, a vicious circle where prices drop along with salaries.
"Despite the generally more optimistic outlook for the growth in our scenario the fears of deflation still dominate the inflationary ones in the short and medium term as the resource slack remains significant," said Inna Mufteeva, analyst at Natixis.
But at the same time, data pointed to a modest rise in industrial production, which rose by 0.4 percent in November after a revised 0.2 decline in Ocotber, according to Federal Reserve statistics.
Production of durable goods - items such as televisions, refrigirators and washing machines - rose 0.7% in November, but production of vehicles and parts declined.
In Europe, stock markets fell sharply on Wednesday after Moody's rating agency placed Spain on review for a possible downgrade, refocusing attention on the eurozone debt crisis.
