Stocks are lingering in the red in early afternoon trading on Wednesday, as worries over inflation and the condition of the stagnant housing market have weighed on equities. The major averages are all in negative territory, offsetting a small portion of this week's gains.
Ahead of the opening bell on Wall Street, the Labor Department released a report showing that consumer prices increased for the third consecutive month in October, with the continued price growth partly due to a notable increase in energy prices.
The report raised concerns among traders amid news that St. Louis Federal Reserve President James Bullard indicated that the Federal Reserve might not raise interest rates from near zero levels until 2012.
Separately, the Commerce Department reported that housing starts showed an unexpected decrease in the month of October, although analysts have pointed out that the drop came amid some uncertainty about the first-time home buyers tax credit.
In earnings news, BJ's Wholesale Club (BJ), Chico's FAS (CHS), Salesforce.com (CRM) and AutoDesk (ADSK) reported third quarter results that were mixed on both the profit and revenue fronts.
The major averages have moved roughly sideways in recent trading, stuck moderately below the unchanged line. The Dow is currently down 42.10 at 10,395.32, the Nasdaq is down 16.96 at 2,186.82 and the S&P 500 is down 3.61 at 1,106.71.
Sector News
Electronic storage stocks continue to post notable losses in early afternoon trading, with the NYSE Arca Disk Drive Index currently down by 1.6 percent. Within the sector, Seagate Technology (STX) is down by 4.3 percent after being downgraded by Bank Of America.
Biotechnology stocks are also moving markedly lower, dragging the NYSE Arca Biotechnology Index down by 1.4 percent. Despite the loss, the index remains stuck in a recent trading range.
Illumina Inc. (ILMN) is helping to lead the sector lower, slipping by 6.1 percent. With the pullback, the stock fell to its lowest intraday price in over nine months earlier in the session.
Notable weakness has also emerged among healthcare-related stocks as the Senate waits for the Congressional Budget Office's estimate of the cost of its healthcare reform bill.
Meanwhile, banking stocks continue to buck the day's downtrend, with the Kbw Bank Index up by 1.3 percent, continuing its seesaw movement.
Stocks In The News
Concur Technologies (CNQR) is moving considerably lower after the company reported fourth quarter revenues of $64.4 million, falling short of the $67.0 million expected by analysts. The stock has dropped by 10.8 percent, pulling back off the more than one-year closing high set in the previous session.
AutoDesk is also retreating following news that the firm expects to report a fourth quarter earnings of $0.19 to $0.24 per share, short of the expected $0.25 per share forecast by analysts. Shares of AutoDesk are currently down by 11.2 percent, falling to a six-week intraday low.
On the other hand, Chico's FAS is moving higher after the company reported third quarter net income of $0.13 per share, topping the forecast of $0.07 per share. Net sales grew to $446.86 million, also besting estimates. The stock has jumped by 10.6 percent, reaching its highest intraday price in two years earlier in the session.
In Focus: Economic Data, Earnings News
As mentioned above, the Labor Department said that its consumer price index increased by 0.3 percent in October following an unrevised 0.2 percent increase in September. Economists had been expecting a somewhat more modest increase of 0.2 percent.
Core consumer prices, which exclude food and energy prices, increased by 0.2 percent in October, matching the increase that was seen in the previous month. The modest increase in core prices came in slightly above economist estimates of a 0.1 percent increase.
In a separate report, the Commerce Department revealed that housing starts fell 10.6 percent to an annual rate of 529,000 in October from the revised September estimate of 592,000. The drop surprised economists, who had expected starts to edge up to 600,000 from the previous month's initial estimate of 590,000.
In earnings news, BJ's Wholesale Club reported adjusted third-quarter net income of $0.45 per share, in-line with expectations. Net sales came in at $2.45 billion, short of consensus estimates, which called for revenues of $2.48 billion.
After the markets closed for trading on Tuesday, Salesforce.com, a customer relationship management service provider, said its profit for the third quarter more than doubled as revenues grew over 20 percent. Revenues for the quarter came in ahead of estimates, while earnings were in line.
Other Markets
In overseas trading, stock markets in the Asia-Pacific region turned in a mixed performance on Wednesday. Japan's benchmark Nikkei 225 Index fell by 0.6 percent, while China's Shanghai Composite Index closed up 0.6 percent.
Meanwhile, the major European markets ended the day little changed, with the U.K.'s FTSE 100 and the French CAC 40 Index slipping by less than a tenth of a percent, while the German DAX Index edged up by 0.2 percent.
In the bond markets, treasuries are moving modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.347 percent, posting a gain of 2.8 basis points.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.