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CarMax ( KMX ) drops after Q4 results miss

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March producer prices at 2.1% YoY vs 2.2% estimated

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Indexes: Dow down 0.36%, S&P up 0.01%, Nasdaq up 0.47%

(Updated at 11:48 a.m. ET/ 1548 GMT)

By Shashwat Chauhan and Shristi Achar A

April 11 (Reuters) -

The benchmark S&P 500 and the Dow were muted at noon on

Thursday after long-dated Treasury yields remained elevated

following the latest economic data as well as commentary from

Federal Reserve policymakers.

New York Federal Reserve President

John Williams

said that while the U.S. central bank had made considerable

progress in lowering inflation, it did not yet need to move to

an easier monetary policy setting, given the recent uneven price

pressure movements.

Richmond Fed President

Thomas Barkin

said the latest inflation data showed the U.S. Federal

Reserve is "not yet where we want to be" and that it was unsure

that inflation would continue to ease.

Wall Street sold off sharply in the last session after

data showed U.S. consumer prices increased more than expected in

March, leading the financial markets to surmise that the central

bank might delay cutting interest rates until September this

year.

"When you have had such a decline as we did yesterday, then

the debate is no longer of when a rate cut is possible, but

perhaps maybe a rate hike (instead), that embeds itself within

the market perception and so its difficult for the market to

rebound quickly," said Peter Cardillo, chief market economist at

Spartan Capital Securities.

Yields across long-dated government bonds came back up to

elevated levels after easing earlier in the day, with the

10-year note last at 4.562%, hovering near its

highest level since November.

Traders now see an over 40% chance of the Fed bringing

in the first rate cut in July, according to the CME FedWatch

Tool.

Meanwhile, a Labor Department report showed U.S. producer

prices increased moderately in March as a rise in the cost of

services was softened by a fall in goods prices, which could

help calm fears that inflation was re-accelerating.

Gains across chipmakers and megacap growth stocks such

as Nvidia ( NVDA ) and Alphabet helped the Nasdaq rise

0.5%.

Of the 11 S&P 500 sectors, nine ticked lower, with

energy leading the losses with a 1.4% fall.

The S&P 500 Financials Index dipped 0.6% a day

before the trio of big banks - JPMorgan Chase & Co ( JPM ),

Citigroup ( C/PN ) and Wells Fargo ( WFC ) - is slated to post

quarterly results.

At 11:48 a.m. ET, the Dow Jones Industrial Average

was down 136.67 points, or 0.36%, at 38,324.84, the S&P 500

was up 0.66 points, or 0.01%, at 5,161.30, and the Nasdaq

Composite was up 75.31 points, or 0.47%, at 16,245.67.

CarMax ( KMX ) dropped 13.2% after the pre-owned vehicles

retailer missed analysts' estimates for fourth-quarter results

and said it might not meet its long-term vehicle sales target.

Globe Life ( GL )

slumped 19.5% after Fuzzy Panda Research disclosed a

short position in the company, alleging multiple instances of

insurance fraud.

Declining issues outnumbered advancers for a 2.01-to-1 ratio

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

The S&P index recorded two new 52-week highs and six new

lows, while the Nasdaq recorded 29 new highs and 89 new lows.