Equity

The hot inflation report likely muddied bets around the timing of the Federal Reserve's first rate cut and sent bond yields higher, with the benchmark 10-year Treasury adding about 10 basis points to 4.29%. February?s producer price index, a measure of wholesale inflation, advanced 0.6% last month. Excluding food and energy prices, core PPI climbed 0.3% in February.

At closing bell, the Dow Jones Industrial Average index declined by 137.66 points, or 0.35%, to 38,905.66. The S&P500 index fell 14.83 points, or 0.29%, to 5,150.48. The tech-heavy Nasdaq Composite index dropped 49.24 points, or 0.3%, to 16,128.53.

Total 9 of the 11 major S&P 500 sectors declined, with energy sector being top performer, rising 1.1%, while real estate sector was bottom performer, falling 1.61%.

ECONOMIC NEWS: US Producer Prices Grow 0.6% In February- A report released by the Labor Department on Thursday showed producer prices in the U.S. increased by much more than expected in the month of February. The Labor Department said its producer price index for final demand climbed by 0.6% in February after rising by 0.3% in January. The report also said the annual rate of producer price growth accelerated to 1.6% in February from a revised 1.0% in January. The stronger than expected monthly producer price growth partly reflected a substantial rebound by energy prices, which spiked by 4.4% in February after slumping by 1.1% in January. Prices for food also jumped 1% in February following a 0.3% decrease in the previous month. Excluding food and energy prices, prices for final demand goods rose by 0.3% in February, matching the increase seen in January. The Labor Department said prices for final demand services also grew by 0.3% in February after climbing by 0.5% in January. While prices for trade services fell by 0.3%, prices for transportation and warehousing services advanced by 0.9% and prices for other services increased by 0.5%. Excluding prices for food, energy, and trade services, core producer prices rose by 0.4% in February after climbing by 0.6% in January. The annual rate of core producer price growth crept up to 2.8% in February from 2.7% in January.

US Business Inventories Remain Unchanged In January- A report released by the Commerce Department on Thursday showed business inventories in the U.S. were unexpectedly flat in the month of January. The Commerce Department said business inventories were virtually unchanged in January after rising by a downwardly revised 0.3% in December. While the report said retail inventories rose by 0.4%, the increase was offset by a 0.3% decline in wholesale inventories and a 0.1% dip in manufacturing inventories. Meanwhile, the Commerce Department said business sales tumbled by 1.3% in January after coming in unchanged in December. Wholesale sales plunged by 1.7% during the month, while retail and manufacturing sales slumped by 1.1% and 1.0%, respectively. With inventories unchanged and sales falling sharply, the total business inventories/sales ratio crept up to 1.39 in January from 1.38 in December.

US Retail Sales Rebound By 0.6% in February- Retail sales in the U.S. rebounded in the month of February, according to a report released by the Commerce Department on Thursday, although the increase fell short of economist estimates. The Commerce Department said retail sales climbed by 0.6% in February after slumping by a revised 1.1% in January. Sales by motor vehicle and parts dealers led the rebound, surging by 1.6% in February after tumbling by 2.1% in January. Excluding the jump in auto sales, retail sales rose by 0.3% in February after falling by 0.8% in January. Ex-auto sales were expected to rise by 0.5%. The report showed sharp increases in sales by building material and garden equipment and supplies dealers and furniture and electronic and appliance stores as well as a notable rebound in sales by gas stations. Meanwhile, sales by furniture and home furnishing stores saw a steep drop during the month, while sales by clothing and accessories stores and health and personal care stores saw further downside. Core retail sales, which exclude automobiles, gasoline, building materials and food services, came in unchanged in February after falling by 0.3% in January.

US Weekly Jobless Claims Unexpectedly Edge Slightly Lower- The Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits edged slightly lower in the week ended February 9th. The report said initial jobless claims slipped to 209,000, a decrease of 1,000 from the previous week's revised level of 210,000. The Labor Department said the less volatile four-week moving average also dipped to 208,000, a decrease of 500 from the previous week's revised average of 208,500. Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, rose by 17,000 to 1.811 million in the week ended March 2nd. The four-week moving average of continuing claims also crept up to 1,799,250, an increase of 2,000 from the previous week's revised average of 1,797,250.

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