Stocks Opened Lower after Weak Economic Data

U.S. stocks opened lower on Tuesday as investors reacted to disappointing data that consumer prices rose sharply and a drop in housing starts was larger than expected. The Dow Jones Industrial Average lately fell 28.79 points, or 0.17%, to 16,752.22. The S&P 500 was down 1.43 points, or 0.07%, to 1,936.35. The Nasdaq Composite was up 1.57 points, or 0.04%, to 4,322.68.

U.S. consumer prices increased in May by the largest amount in more than a year as the cost of food and gasoline showed big gains and airline fares jumped by the largest amount in 15 years. The consumer price index rose 0.4 percent in May, the biggest one-month jump since a 0.6 percent increase in February 2013, the Labor Department reported Tuesday.

U.S. housing starts and building permits fell more than expected in May. Groundbreaking for homes fell 6.5 percent to a seasonally adjusted annual pace of 1 million units, the Commerce Department said on Tuesday.

Gold premiums in India, the world’s second biggest buyer after China, fell to their lowest in four months after the Reserve Bank of India (RBI) allowed private companies to import gold. Premiums fell to $25-30 an ounce on London prices, a level last seen in February, from $60 charged earlier in June.

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