NEW YORK: Wall Street stocks edged higher early Wednesday as markets weighed the latest data showing elevated inflation against PepsiCo results that topped estimates.
Wholesale inflation, measured through the producer price index, rose 0.4 percent in September, more than expected, in the latest sign that pricing pressures were lingering.
The report came a day before key consumer price data that will be assessed for its implications for more US Federal Reserve interest rate hikes.
S&P 500, Nasdaq fall on fears of profit hit from inflation, rate hikes
Meanwhile, PepsiCo raised its full-year profit and revenue forecast following strong third-quarter results in a sign of the continued robustness of consumer demand. Shares jumped nearly four percent.
About 20 minutes into trading, the Dow Jones Industrial was up 0.2 percent at 29,295.32.
The broad-based S&P 500 climbed 0.2 percent to 3,597.02, while the tech-rich Nasdaq Composite Index advanced 0.3 percent to 10,461.00.
Wednesday’s session comes on the heels of several downcast days in which worries about macroeconomic weakness have more than offset faith in a market rebound following excessive selling.
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