02:08 PM EDT, 08/14/2024 (MT Newswires) -- US benchmark equity indexes were mixed intraday as traders analyzed a report showing consumer inflation rose as projected in July, while the annual pace of price growth unexpectedly slowed.

The Dow Jones Industrial Average was up 0.6% at 40,007.4 after midday Wednesday, while the S&P 500 rose 0.2% to 5,447.2. The Nasdaq Composite fell 0.2% to 17,157.6. Among sectors, financials led the gainers, while communication services saw the steepest decline.

In economic news, the US consumer price index increased 0.2% last month after a 0.1% decrease in June, according to the Bureau of Labor Statistics. The latest reading was in line with a Bloomberg-compiled survey. Annually, inflation eased to 2.9% in July, the smallest increase since March 2021. The consensus view was for the annualized metric to remain unchanged at 3% growth.

"With the labor market showing clear signs of cooling and inflationary pressures subsiding, the Federal Reserve can confidently start to dial back its policy rate in September," TD said in a note to clients.

On Tuesday, official data showed US producer prices grew less than expected last month.

The US two-year yield rose 1.6 basis points to 3.96% intraday, while the 10-year rate dropped 2.4 basis point to 3.83%.

Mortgage applications in the US rallied last week to the highest level since January 2023 driven by a surge in refinance activity, the Mortgage Bankers Association said.

West Texas Intermediate crude oil decreased 1.2% to $77.38 a barrel intraday.

In company news, Kellanova ( K ) agreed to be acquired by confectionery and pet food company Mars in an all-cash deal worth $35.9 billion, including assumed net leverage. The packaged food maker's shares rose 7.7%, the best performer on the S&P 500.

Cardinal Health ( CAH ) was among the top gainers on the S&P 500, up 4.5%, as the drug distributor raised its full-year earnings outlook after delivering higher fiscal fourth-quarter results that exceeded market estimates.

Alphabet's (GOOG, GOOGL) class A and C shares fell more than 3% each, among the steepest declines on the S&P 500 and the Nasdaq. The US Department of Justice is considering options such as a bid to break up the tech giant's Google ( GOOG ) unit after a recent court ruling found that the company monopolized the online search market, Bloomberg News reported Tuesday, citing unnamed sources.

Gold was down 1.1% to $2,480.90 per troy ounce, while silver lost 1.5% to $27.36 per ounce.