LIVE MARKETS-US stocks start out mixed after inflation report

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U.S. STOCKS START OUT MIXED AFTER INFLATION REPORT

The main U.S. indexes are mixed and subdued early on Tuesday, as investors assess the latest inflation numbers and their impact on monetary policy after markets came off sharp gains from the temporary Sino-U.S. trade truce.

U.S. consumer prices rebounded moderately in April, with headline inflation increasing 0.2% last month after dipping 0.1% in March. Economists polled by Reuters had forecast that the CPI would rise 0.3%.

Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, said:

"While the headline number for inflation was better than expected, there are indicators that tariffs have already pushed prices higher."

Jacobsen added "Turning down the temperature of tariffs is good as the price effects would start seeping into the consumer basket pretty quickly. The trade reset with China might mean the Fed can go back to business as usual and gradually resume cutting rates later this year."

A majority of S&P 500 .SPX sectors are higher with consumer discretionary .SPLRCD posting the biggest rise.

Healthcare .SPXHC, off more than 2%, is taking the biggest hit. This after United Health's UNH.N CEO Andrew Witty decided to step down for personal reasons, and the company suspended its 2025 outlook as medical expenditures are expected to be higher than anticipated. UNH is trading down more than 10% and is the biggest drag on both the Dow .DJI and S&P 500 in early trade.

In any event, under the surface, chip stocks .SOX are an outperformer, and are helping to boost the Nasdaq .IXIC.

Here is a snapshot of where markets stood around 9:45 a.m. ET:

(Terence Gabriel, Chuck Mikolajczak)

TUESDAY'S EARLIER LIVE MARKETS POSTS:

GOLDMAN UPS ITS S&P 500 INDEX PRICE TARGETS CLICK HERE

S&P 500 INDEX MAKES A LEAP, NOW DOWN LESS THEN 5% FROM RECORD CLOSE CLICK HERE

TRADE WARS: FROM SPOTLIGHT TO SIDESHOW CLICK HERE

TRUMP BACKS OFF... NOW FOCUS ON FISCAL POLICY CLICK HERE

THE LAST 6 MONTHS: 90% OF MSCI INDICES HAVE BEATEN WALL ST CLICK HERE

STOXX MUTED AS TRADE WAR TRUCE CELEBRATION ENDS, EARNINGS RUMBLE ON CLICK HERE

EUROPE BEFORE THE BELL: MOOD TEMPERS AFTER U.S.-CHINE TRUCE CLICK HERE

WITH A HIATUS IN THE TRADE WAR, IT IS BACK TO THE GRIND CLICK HERE