Markets Right Now: Market shakes inflation worries, ends up

NEW YORK (AP) — The latest on developments in financial markets (all times local):

4 p.m.

Stocks rose for the fourth day in a row on Wall Street after shaking off an early stumble following another sign that inflation was picking up slightly.

The market started slightly lower Wednesday but turned higher within the first hour of trading and kept going. The Dow Jones industrial average rose 253 points.

Bond yields rose following the report on inflation in consumer prices. The rising yields helped send banks higher. Bank of America rose 2.6 percent.

Technology, industrial and consumer-focused companies also rose.

The Standard & Poor's 500 index rose 35 points, or 1.3 percent, to 2,698.

The Dow rose 1 percent to 24,893. The Nasdaq climbed 130 points, or 1.9 percent, to 7,143.

The yield on the 10-year Treasury note rose to 2.91 percent.

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11:45 a.m.

U.S. stocks shook off an early decline and are mostly higher in midday trading, led by gains in banks.

Banks were benefiting Wednesday from a rise in bond yields, which allows them to charge higher interest rates on loans. Bank of America rose 1.1 percent.

Bond yields rose after the government said consumer prices climbed in January at a rate that was faster than economists had expected.

The yield on the 10-year Treasury note rose to 2.89 percent from 2.84 percent a day earlier.

The Standard & Poor's 500 index rose 11 points, or 0.4 percent, to 2,674.

The Dow Jones industrials rose 13 points, or 0.1 percent, to 24,653. The Nasdaq climbed 66 points, or 1 percent, to 7,081.

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9:35 a.m.

Stocks are slightly lower and bond yields are higher in early trading after the government reported the highest increase in consumer prices in a year.

The Labor Department reported early Wednesday that core consumer prices rose 0.3 percent last month, more than expected.

Investors were looking at the number closely because a sharp increase in wages last month, another key measure of inflation, helped set off this month's market plunge.

The yield on the 10-year Treasury note rose to 2.87 percent, up from 2.82 percent shortly before the report came out.

The Standard & Poor's 500 index fell 13 points, or 0.4 percent, to 2,651.

The Dow Jones industrials fell 125 points, or 0.5 percent, to 24,508. The Nasdaq lost 17 points, or 0.2 percent, to 6,998.

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9:15 a.m.

U.S. stock futures are lower after the government reported the highest increase in consumer prices in a year.

Futures for the Dow Jones industrials were indicating a drop of 177 points at the open. The S&P 500 index was indicated with a decline of 18 points, while Nasdaq was showing a drop of 51.

Before the release of the data, the Dow futures were showing a gain of about 170 points.

The Labor Department says consumer prices, excluding food and energy, rose 0.3 percent last month. Analysts were expecting an increase of 0.2 percent. Meanwhile, another report shows consumers cut back on spending in January by more than expected.

Investors were anxiously awaiting the data on consumer prices. Recent swings in financial markets were touched off by worries that rising inflation could prompt the Federal Reserve to accelerate increases in interest rates.

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8:40 a.m.

U.S. stock futures sank after the government reported the highest increase in consumer prices in a year and a significant decline in retail sales for January.

The Labor Department said consumer prices, excluding food and energy, rose 0.3 percent last month. Analysts were expecting an increase of 0.2 percent. Meanwhile, another report shows consumers cut back on spending in January by more than expected.

The Dow Jones industrials were indicated to open with a drop of about 320 points. Before the release of the data, the Dow futures were showing a gain of about 170 points.

Investors were anxiously awaiting the data on consumer prices. Recent swings in financial markets were touched off by worries that inflation might rise too quickly, which could prompt the Federal Reserve to accelerate increases in interest rates.