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US producer prices rise moderately in December

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Boeing ( BA ) dips following low 2024 jet deliveries report

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

drug

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Dow up 0.52%, S&P 500 up 0.11%, Nasdaq down 0.23%

(Adds trading volume, prices)

By Chuck Mikolajczak

NEW YORK, Jan 14 (Reuters) - The S&P 500 edged higher

while the Nasdaq dipped after a volatile session on Tuesday as

investors gauged inflation data and braced for quarterly

earnings reports to justify stock valuations and the strength of

the U.S. economy.

Stocks oscillated between gains and losses throughout the

day. Equities received an initial lift from a Labor Department

report that showed the producer price index rose less than

expected in December, although the report failed to materially

affect expectations about the Federal Reserve's likely path of

monetary policy this year.

Investors awaited Wednesday's consumer price index reading,

which will further shape expectations for inflation and the Fed.

"There is an inherent level of uncertainty out there about

where rates and the Fed is headed," said Chris Fasciano, chief

market strategist at Commonwealth Financial Network.

"Now we'll see what tomorrow morning brings," he said,

referring to the CPI report.

The Dow Jones Industrial Average rose 221.16 points,

or 0.52%, to 42,518.28, the S&P 500 gained 6.69 points,

or 0.11%, to 5,842.91 and the Nasdaq Composite lost

43.71 points, or 0.23%, to 19,044.39.

The market is pricing in about 29 basis points in rate cuts

from the Fed by the end of 2025, according to LSEG data, with

expectations for a cut of at least 25 bps not rising above 50%

until the June meeting.

Adding to investor caution, U.S. Treasury yields remained at

elevated levels, with the yield on the benchmark 10-year

Treasury note at 4.784%, holding near a 14-month

high reached on Monday.

Quarterly earnings get under way on Wednesday with results

from big banks, which are expected to post stronger profits,

fueled by robust dealmaking and trading. The S&P 500 bank index

advanced.

Goldman Sachs ( GS ) shares gained 1.52% ahead of its

earnings results scheduled for Wednesday and helped keep the Dow

in positive territory.

The benchmark S&P 500 is trading at valuations well above

its historical long-term average and a disappointing earnings

season could put further gains for equities in jeopardy.

Healthcare was among the worst-performing of the 11

major S&P sectors, down 0.94% as Eli Lilly ( LLY ) stumbled

6.59% after it forecast fourth-quarter sales of weight-loss drug

Zepbound below estimates.

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.

After rallying following the U.S. election, stocks have

struggled recently, with the S&P 500 falling in four of the

previous five weeks as a resilient economy, nagging inflation

and comments from Fed policymakers have fueled worries about the

central bank being less aggressive in cutting interest rates

than previously anticipated.

Concerns about potential tariffs from the Trump

administration that would further stoke inflation have also

lingered.

Boeing ( BA ) shed 2.08% after the planemaker's annual

deliveries dropped in 2024 to their lowest level since the

pandemic.

Advancing issues outnumbered decliners by a 2.81-to-1 ratio

on the NYSE and by a 1.39-to-1 ratio on the Nasdaq.

The S&P 500 posted eight new 52-week highs and six new lows,

while the Nasdaq Composite recorded 36 new highs and 132 new

lows.

Volume on U.S. exchanges was 13.58 billion shares, compared

with the 15.72-billion average over the last 20 trading days.