July consumer prices in US up as anticipated
Reuters and AFPU.S. consumer prices rose as expected in July, which could comfort Federal Reserve officials worried about low inflation as they weigh trimming their massive bond buying program.
August 16, 2013, 12:02 am TWN
The Labor Department said on Thursday its Consumer Price Index rose 0.2 percent as the cost of goods and services ranging from tobacco to apparel and food increased. The CPI had increased 0.5 percent in June.
July's increase in consumer inflation was in line with economists' expectations. In the 12 months through July, the CPI advanced 2.0 percent, the largest increase since February, after increasing 1.8 percent in June.
U.S. stocks Thursday moved sharply lower in early trade as bond yields surged on a solid jobless claims report and disappointing earnings outlooks from Dow components Cisco and Walmart.
An hour into trade, the Dow Jones Industrial Average sank 215.89 points (1.41 percent) to 15,121.77. The broad-based S&P 500 lost 22.52 (1.34 percent) at 1,662.87, while the tech-rich Nasdaq Composite Index tumbled 56.81 (1.55 percent) to 3,612.46.
Meanwhile, information technology giant Cisco announced it was cutting 4,000 jobs due to the weaker-than-expected economic recovery.
Walmart trimmed its full-year earnings and revenue prediction, citing tepid consumer activity in the U.S. and abroad.
Cisco shares plummeted 7.5 percent, while Walmart fell 2.4 percent.