US equity indexes fell in midday trading on Tuesday as investors weighed a steeper-than-expected drop in producer price inflation.
The tech-heavy Nasdaq slipped 0.4% to 19,004.2, with the S&P 500 down 0.3% to 5,815.3 and the Dow Jones Industrial Average 0.2% lower at 42,204.5. Healthcare and communication services led the decliners while utilities and materials were among the top gainers intraday.
In economic news, the US Producer Price Index grew 0.2% in December, slower than a 0.4% increase in November and below the 0.4% gain expected in a survey compiled by Bloomberg. After excluding food and energy prices, core PPI held steady, lagging the 0.3% increase anticipated and a 0.2% advance in the previous month.
PPI accelerated by 3.3% year-over-year in December from a 3% increase in November, while core PPI remained at 3.5% year-over-year.
Most US Treasury yields fell, with the 10-year down 1.3 basis points to 4.79%, slipping from an intraday 52-week high reached on Monday. The two-year rate fell 2.5 basis points to 4.38%, declining from its highest since late July.
Meanwhile, West Texas Intermediate crude oil futures dropped 1.6% to $77.55 a barrel, retreating from its highest level since mid-August.
In company news, Eli Lilly (LLY) said Tuesday its Q4 revenue is expected to be about $13.5 billion. Analysts polled by FactSet expect $13.93 billion. Shares traded 7.2% lower intraday, the worst performer in the S&P 500.
United Rentals (URI) has agreed to acquire H&E Equipment Services (HEES) in an all-cash deal worth roughly $4.8 billion, including about $1.4 billion of debt, as the equipment rental company aims to expand its capacity in the US.
