(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

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US producer prices rise moderately in December

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Boeing ( BA ) dips following weak 2024 jet deliveries report

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Eli Lilly ( LLY ) falls after weak sales forecast for weight-loss

drug

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Indexes: Dow off 0.10%, S&P 500 slips 0.21%, Nasdaq down

0.29%

(Updates with mid-session trading)

By Johann M Cherian and Sukriti Gupta

Jan 14 (Reuters) -

Wall Street's main indexes fell on Tuesday as investors

turned their attention to upcoming inflation data and quarterly

earnings reports, which are expected to provide insights into

the health of the U.S. economy.

Stocks received an initial boost after a

Labor Department report

showed the producer price index rose moderately in December

2024, but this did little to change perceptions about the

Federal Reserve's likely monetary policy path this year.

Traders expect the Fed will deliver 29.4 basis points

worth of rate cuts by the end of 2025, according to data

compiled by LSEG - lower than the 50-bps reduction the central

bank forecast for the year.

Also adding to investor unease, the yield on the

benchmark 10-year Treasury note stood at 4.78%,

close to its 14-month high.

The focus will now be on the consumer price index

figures, due on Wednesday, along with quarterly earnings from

big banks, which are expected to post stronger earnings, fueled

by robust dealmaking and trading. An index tracking banks

rose 0.4%.

"The market remains gripped with cautiousness... I do

expect it to be a good earnings season, but we might have more

negative guidance as previously," said Peter Cardillo, chief

market economist at Spartan Capital Securities.

The benchmark S&P 500 is trading at valuations much

above its historical long-term averages and poor corporate

performance could test further market gains.

At 11:38 a.m. ET the Dow Jones Industrial Average

fell 43.52 points, or 0.10%, to 42,253.60, the S&P 500

lost 12.11 points, or 0.21%, to 5,824.11, and the Nasdaq

Composite lost 55.03 points, or 0.29%, to 19,033.07.

Five of the 11 S&P 500 sectors slipped, with health

stocks down 1.4%. Eli Lilly ( LLY ) lost 7.1% after it

forecast fourth-quarter sales of weight-loss drug Zepbound below

estimates.

Markets also weighed a report which said that

President-elect Donald Trump's incoming administration was

considering gradual tariff hikes, including a plan to increase

import duties by 2% to 5% a month.

Kansas City Fed president Jeff Schmid said the impact of

Trump's policies was an "active conversation" at the central

bank and that it would respond if either its inflation or

employment goals are pushed off course.

Wall Street's main indexes have witnessed a downward trend

since early December, with the price-weighted Dow losing more

than 5% from the record high it hit last month, and the

benchmark S&P 500 close to a two-month low.

The Fed's cautious stance on monetary policy easing this

year, along with subsequent batches of upbeat economic data,

raised investor concerns that U.S. inflation could be running

high.

Trump is expected to take office on Jan. 20 and his policy

proposals on tariffs and immigration are widely expected to fuel

inflation.

Boeing ( BA ) fell 2.7% after the aircraft maker's annual

deliveries dropped in 2024 to their lowest level since the

COVID-19 pandemic.

Advancing issues outnumbered decliners by a 2.31-to-1

ratio on the NYSE, and by a 1.31-to-1 ratio on the Nasdaq.

The S&P 500 posted seven new 52-week highs and two new

lows, while the Nasdaq Composite recorded 31 new highs and 91

new lows.