Markets Rally From CPI-Related Dip to End Mixed

U.S. equities bounced back from big early losses after the Labor Department reported consumer inflation rose more than anticipated in January, raising fears of more Fed interest rate hikes. After initially sinking, the markets recovered in the afternoon and ended mixed, with the Nasdaq higher, the S&P 500 flat, and the Dow lower.

Boeing (BA) shares advanced more than 1% as Air India made a major passenger jet purchase. Tesla (TSLA) was the best-performing stock in the S&P 500 on indications that a deal with Mexico may be in the works for the electric carmaker to put a factory in that country. Aptiv PLC (APTV) shares took off as the auto parts supplier predicted that its sales and operating income will soar because of demand for electric vehicles. Nvidia (NVDA) shares jumped after a Bank of America analyst gave the stock a "buy" rating because of the company's leadership in making chips for artificial intelligence (AI) applications.

Shares of Cadence Design Systems (CDNS) gained after the software maker posted better-than-expected results and full-year guidance. Shares of another software provider, Palantir Technologies (PLTR), soared 21% as the company announced its first-ever quarterly profit. 

Coca-Cola Sales

Home builder stocks, which are especially sensitive to higher borrowing costs, declined. Coca-Cola (KO) shares slipped as the soft drink maker's sales volume fell and it forecast slowing sales growth this year. Slowing sales also sent shares of Burger King parent Restaurant Brands International (QSR) down. 

Shares of Norfolk Southern Corporation (NSC) dropped as the railroad detailed plans to clean up a toxic chemical spill from a train derailment in Eastern Ohio earlier this month. The shares have dipped about 7% since the accident. Leidos Holdings (LDOS) shares tumbled after the defense contractor's outlook for full-year profit missed estimates.

The inflation data sent the yield on the 10-year Treasury note higher. Oil futures fell 1.2%. Gold prices rose. The U.S. dollar was up versus the yen but declined against the euro and pound. Most major cryptocurrencies posted solid gains.