Stocks Little Changed After Inflation, Housing Data

U.S. Market
Stocks were little changed this morning after inflation and housing data.

The consumer price index rose 0.2% in February from the previous month, the first increase since October of last year. Core inflation, which excludes volatile energy and food price, was also up 0.2% in the month. Year-over-year, overall inflation was flat while core inflation was up 1.7%. The slightly higher-than-expected core inflation reading brings the measure closer to the Fed’s 2% target.

New home sales rose 7.8% in February to a seasonally adjusted annual rate of 539,000. Economists had expected sales to drop to 460,000 in the month. Sales are now at the highest level since February 2008.

The U.S. flash purchasing managers index from Markit rose to 55.3 in a preliminary March reading, up from 55.1 in February and above expectations of a reading of 54.0. The report is a sign that manufacturing activity may be picking up.

At midday the Dow and S&P 500 were each up 0.1% while the Nasdaq was 0.4% higher.

Stocks on the Move
Shares of Whiting Petroleum (WLL) were down nearly 20% this morning after the firm announced a plan to sell 35 million shares and issue $1.75 billion in senior notes. The proceeds will be used to pay down debt related to the firms’ acquisition of Kodiak Oil & Gas.

Copper producer Freeport-McMoRan (FCX) slashed its dividend by 84% today in response to lower commodity prices. Shares were down 1.8% on the move.

Foreign Markets
European markets were higher today. In late trading, the FTSE 100, the Paris CAC and Germany’s DAX were up 0.2%. 0.9% and 1.1% respectively.

Asian shares were mixed. The Shanghai Composite was up 0.1%, the Nikkei 225 was off 0.2% while the Hang Seng was down 0.4%.