02:15 PM EDT, 08/13/2024 (MT Newswires) -- US benchmark equity indexes were higher intraday after official data showed producer prices increased less than projected in July.

The Nasdaq Composite was up 2.2% at 17,151.1 after midday Tuesday, while the S&P 500 rose 1.4% to 5,417.3. The Dow Jones Industrial Average advanced 0.8% to 39,359.9. Among sectors, technology and consumer discretionary led the gainers, while energy was the only decliner.

In economic news, the US producer price index rose 0.1% month over month in July on a seasonally adjusted basis, the Bureau of Labor Statistics reported. This compared with the Bloomberg-polled consensus for a 0.2% gain. PPI climbed 2.2% annually last month, below the 2.3% pace that analysts were projecting.

"A cooler-than-expected PPI report offers welcome support for those in favor of a near-term rate reduction," Stifel said in a note to clients. "That being said, the lack of consistency throughout the underlying components with an uptick in prices excluding food, energy and trade services puts even more focus on tomorrow's (consumer price index) release as an indication of the trend in price pressures."

The CPI is expected to have increased 0.2% sequentially and 3% annually in July, according to a Bloomberg-compiled consensus.

Small business optimism in the US increased last month to its highest level since February 2022, though inflation remained owners' top concern, the National Federation of Independent Business' latest survey showed.

"Combined with an uptick in inflation concerns, it seems that while overall sentiment is improving, small businesses are remaining cautious for the time being," TD said in a note to clients.

The US 10-year yield fell 5.3 basis points to 3.86% intraday, while the two-year rate dropped 6.1 basis point to 3.95%.

In company news, Starbucks ( SBUX ) has poached Chipotle Mexican Grill ( CMG ) Chief Executive Brian Niccol, who will assume the top role at the coffee giant next month. Starbucks ( SBUX ) shares jumped 21%, the top gainer on the S&P 500 and the Nasdaq, while Chipotle declined 7.4%, the steepest decline on the S&P 500.

Baxter International ( BAX ) has sold its kidney care segment to private equity firm Carlyle Group ( CG ) for $3.8 billion. Baxter shares fell 6.1%, the second-worst performer on the S&P 500, while Carlyle rose 1.8%.

Tencent Music Entertainment's ( TME ) second-quarter top-line declined on a yearly basis mainly due to lower revenue in the company's social entertainment services segment, partially offset by gains in its online music unit. The company's American depositary receipts were down 15%.

West Texas Intermediate crude oil fell 2.1% to $78.40 a barrel intraday.

Gold was up 0.1% at $2,507.20 per troy ounce, while silver fell 0.9% to $27.77 per ounce.