United States inflation spikes, so why didn't Wall Street panic?

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By 12:28 p.m. ET (1728 GMT), the Dow Jones Industrial Average gained 0.14 percent to 24,674.96, the S&P 500 rose 0.53 percent, to 2,677.07 and the Nasdaq Composite was up almost 1 percent at 7,080.24. "The core component also provided a surprise with an increase of 0.3% (versus consensus of 0.2%)", noted Japanese broker, Daiwa Securities. Consumer prices excluding food and energy climbed 0.3% in January and 1.8% from a year ago.

Over rising price pressure, this might soothe nerves, and result in higher expectations of interest rates and a less-bullish U.S. Consumer.

US market indexes reported a fourth day of consecutive gains on Wednesday. The industrials sector fell 0.3 per cent. However, the year-on-year rise was unchanged at 1.8 per cent.

The monthly Labor Department report on the price of everything from gas to groceries was closely watched Wednesday, with Wall Street investors suddenly very concerned about inflation.

"It does play into the fears that we are getting into a different inflation regime than we were before".

Among the biggest movers were sportswear retailer Under Armour, up more than 15 percent on strong quarterly sales, and AmerisourceBergen, up 8 percent after the Wall Street Journal reported Walgreens was seeking to buy out the drug distributor.

Other notable index closes included the S&P 400 Mid-Cap Index at 1,878.26 for a gain of 34.53 points or 1.87%; the S&P 100 Index at 1,193.34 for a gain of 14.41 points or 1.22%; the Russell 3000 Index at 1,593.75 for a gain of 22.23 points or 1.41%; the Russell 1000 Index at 1,493.98 for a gain of 20.36 points or 1.38%; and the Dow Jones U.S. Select Dividend Index at 690.62 for a gain of 6.53 points or 0.95%.

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The yield on the United States Treasury's 10-year note rose sharply on the inflation report, touching 2.88 percent before declining somewhat.

"Given the data it seems unlikely the Fed will shy away from a rate hike in March".

Nine of the 11 major S&P indexes rose, led by real estate, up 0.54 per cent.

France's CAC 40 was up 0.2 percent to 5,120, while Germany's DAX shed 0.3 percent to 12,152. That is above the 72 per cent average beat-rate in the past four quarters. That was a significant improvement from modest annual growth rates of around 2 percent the US experienced during the economic recovery, now in its ninth year. "We feel great about our set up for 2018 and our ability to continue delivering record-setting results", said Christopher Nassetta, who is the president and the chief executive officer of Hilton.

After Hilton Worldwide we move on to sector peer, Wyndham Worldwide Corporation (NYSE:WYN), the hospitality company.

Earnings per share of US$4.41 were up from US$1.53 the year before.

"Our teams have continued to execute against our strategic and operating plans; we continued to return cash to shareholders through dividends and share repurchases; and we have positioned our businesses for future growth", he added. The S&P 500 rose 1.34 percent while the upbeat inflation data was disregarded by investors.

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