04:34 PM EST, 01/14/2025 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 rose Tuesday as equity markets assessed the latest producer price report and awaited official data on consumer inflation.

The Dow gained 0.5% to 42,518.3, while the S&P increased 0.1% to 5,842.9. The Nasdaq Composite fell 0.2% to 19,044.4. Utilities and financials led the gainers among sectors, while communication services and health care posted the biggest drops.

In economic news, US producer price growth last month unexpectedly decelerated on a sequential basis as wholesale costs of services held steady, while goods' price gains cooled, the Bureau of Labor Statistics reported.

"A relatively more benign producer price report compared to expectations offers welcome relief for a (Federal Reserve) increasingly concerned about an acceleration in cost pressures," Stifel said in a note. "While this morning's report does little to arrest the likelihood -- and need -- for a policy pivot near term, it does seemingly afford the (Federal Open Market Committee) more flexibility for policy as the data continue to evolve in the new year and under a new regime in Washington."

Government data are expected to show Wednesday that the US consumer price index in December rose 0.4% sequentially and 2.9% annually, according to a Bloomberg survey.

Small business optimism in the US reached the highest since October 2018, while the uncertainty index dropped, the National Federation of Independent Business' December survey showed.

"Small business owners feel more certain and hopeful about the economic agenda of the new (Trump) administration," said Bill Dunkelberg, the federation's chief economist. "Expectations for economic growth, lower inflation and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year."

The US two-year yield decreased 3.9 basis points to 4.36%, while the 10-year rate lost 2.1 basis points to 4.78%.

In company news, United Rentals ( URI ) agreed to acquire H&E Equipment Services ( HEES ) for $4.8 billion in cash as the equipment rental company aims to expand capacity in the US. United Rentals ( URI ) shares jumped 5.9%, the top gainer on the S&P, while H&E Equipment more than doubled.

Celanese (CE) shares rose 5.4%, the second-largest gain on the S&P, as BofA Securities upgraded the stock to buy.

Eli Lilly ( LLY ) shares dropped 6.6%, the biggest decline on the S&P, after the drugmaker lowered Q4 and full-year revenue expectations amid slower-than-expected growth in its US incretin division.

Boeing ( BA ) shares fell 2.1%, the largest drop on the Dow, after the plane maker's Q4 and 2024 orders more than halved from a year earlier with deliveries also dropping.

West Texas Intermediate crude oil fell 1.3% to $77.79 a barrel.

Gold rose 0.4% to $2,690.10 per troy ounce, while silver gained 0.8% to $30.54 per ounce.