Mixed Market Signals: Nasdaq Dips, Dow Gains as Producer Prices Fall Unexpectedly

U.S. stocks show mixed performance amid lower producer prices, modest retail sales and flat industrial output; pharma and utility stocks lead gains.

The Nasdaq dipped 34.49 points (0.2%) to 19,112.32, the S&P 500 rose 24.35 points (0.4%) to 5,916.93 and the Dow climbed 271.69 points (0.7%) at 42,322.75.

Labor Department report showed producer prices unexpectedly decreased in April. Its producer price index for final demand fell by 0.5% in April following a revised unchanged reading in March. Another report released by the Commerce Department showed a slight increase by U.S. retail sales in April.

The Commerce Department said retail sales crept up by 0.1% in April after surging by an upwardly revised 1.7% in March. Excluding sales by motor vehicle and parts dealers, retail sales still edged up by 0.1% in April after climbing by 0.8% in March. Ex-auto sales were expected to rise by 0.3%. The Federal Reserve released a report on showing industrial production in the U.S. came in unchanged in April. It also said industrial production was unchanged in April after falling by 0.3% in March.

Utilities output surged by 3.3% in April after plunging by 6.2% in March, manufacturing and mining output fell by 0.4% and 0.3%, respectively. Pharmaceutical stocks strongly moved upwards with the NYSE Arca Pharmaceutical Index surging by 2.6%. Utility stocks are significantly strong, as reflected by the 2.4% jump by the Dow Jones Utility Average. Gold, biotechnology and commercial real estate stocks also saw considerable strength while oil service and airline stocks notably moved to the downside.

Asia-Pacific stocks moved mostly lower. Japan's Nikkei 225 Index slumped by 1%, while China's Shanghai Composite Index slid by 0.7%. Meanwhile, the major European markets moved to the upside on the day. While the German DAX Index advanced by 0.7%, the U.K.'s FTSE 100 Index climbed by 0.6% and the French CAC 40 Index rose by 0.2%. In the bond market, treasuries regained ground after trending lower over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled 7.3 bps to 4.45%.

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