Stocks end mixed on concerns
Stocks finished mixed Wednesday after consumer prices showed a larger-than-expected increase in January and minutes from the Federal Reserve's last meeting showed the central bank considered but decided against taking a more dovish tone on the threat of inflation.
The Nasdaq composite index closed at a six-year high, and the Dow Jones industrial average fell.
Inflation again commanded Wall Street's attention, with the latest readings leaving some investors unnerved. Only last week Wall Street rallied after Federal Reserve Chairman Ben S. Bernanke told Congress that inflation appeared to be moderating as the economy was showing sustainable growth. The Fed minutes indicated policymakers saw economic threats spurred by the weak housing market were easing, but not sufficiently to sound the all-clear on inflation.
The Labor Department's report that the consumer price index rose 0.2% in January came as a surprise to Wall Street, which had expected a 0.1% increase. Declines in energy prices didn't fully offset a rise in costs of medical care, food and airline tickets. The core figure, which excludes often volatile food and energy prices, rose a greater-than-expected 0.3%.
The inflation news and Fed comments followed a profit report from Hewlett-Packard late Tuesday that damped sentiment on Wall Street.
"We find it hard to see how the economy can continue to do as well as it has without interest rates being under some upward pressure, and if interest rates do stay where they are or in fact go down, it's probably because the economy will slow down," said Denis Amato, chief investment officer at Ancora Advisors.
The Dow fell 48.23 points, or 0.4%, to 12,738.41.
Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index fell 2.05 points, or 0.1%, to 1,457.63, and the Nasdaq rose 5.38 points, or 0.2%, to its highest level in six years at 2,518.42. The previous high was 2,514.22.
Bond yields were little changed, with the benchmark 10-year Treasury note rising to 4.69% from 4.68% on Tuesday.
The dollar was mostly lower against other major currencies, although it rose against the yen after the Bank of Japan increased interest rates.
Gold futures soared $23.10 to $680.20 an ounce, a level not seen since July, as oil prices increased.
Crude oil futures gained $1.22 to $60.07 a barrel in New York trading after a number of refinery shutdowns raised concerns about supply and as tensions increased over Iran's uranium enrichment plans.
