Stocks Opened Lower after Economic Reports

U.S. stocks opened lower on Wednesday, as economic reports pointed to healthy American consumers, but also suggested inflation might be picking up. The Dow Jones Industrial Average lately fell 132.09 points, or 0.42%, to 3,905.79. The S&P 500 was down 26.80 points, or 0.68%, to 3,905.79. The Nasdaq Composite declined 136.14 points, or 0.97%, to 13,911.36.

Oil futures rose Wednesday, extending gains seen as freezing weather extending as far south as Texas continues to shut in production and keep refineries closed. West Texas Intermediate crude for March delivery was up 85 cents, or 1.4%, at $60.90 a barrel. April Brent crude rose $1.01, or 1.6%, to $64.36 a barrel.

Retail sales rocketed higher in January following a December slide. Retail sales rose at a 5.3% monthly clip in January, the Commerce Department said Wednesday, following a drop of 1.0% in December. This was much faster than the 1.1% rise expected, according to Bloomberg consensus data.

Producer prices rose much faster than expected in January, as producer pricing power firmed at the start of the year. Producer prices jumped 1.3% in January over December, following a 0.3% rise during the prior month. This handily topped estimates for a rise of 0.4%, according to Bloomberg consensus data.

U.S. industrial output increased at a 0.9% month-over-month clip in January, the Federal Reserve said Wednesday, with this metric decelerating by less than expected compared to December as momentum in the manufacturing sector’s recovery held up strongly.

Shopify (SHOP) posted fourth-quarter results that sailed above expectations, as the pandemic drove another surge in e-commerce demand in the final months of 2020.Fourth-quarter revenue nearly doubled over last year to $977.7 million, coming in well above the $910.4 million expected, according to Bloomberg consensus data.