Wall Street closed mixed on Tuesday, driven by utilities and financial stocks. While producer-side inflation released on the day boosted morale, investors currently await consumer inflation numbers eagerly. Two of the three most widely followed indexes closed the session in the green, while one ended in the red.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.5%, or 221.16 points, to close at 42,518.28. Nineteen components of the 30-stock index ended in positive territory, while 11 ended in negative.

The tech-heavy Nasdaq Composite lost 43.71 points, or 0.2%, to close at 19,044.39.

The S&P 500 gained 6.69 points, or 0.1%, to close at 5,842.91. Eight of the 11 broad sectors of the benchmark index closed in the green. The Utilities Select Sector SPDR (XLU), the Materials Select Sector SPDR (XLB) and the Financials Select Sector SPDR (XLF) advanced 1.3%, 1.2% and 1.2%, respectively, while the Healthcare Select Sector SPDR (XLV) declined 1%.

The fear-gauge CBOE Volatility Index (VIX) decreased 2.5% to 18.71. A total of 13.6 billion shares were traded on Tuesday, lower than the last 20-session average of 15.7 billion. Advancers outnumbered decliners by a 2.81-to-1 ratio on the NYSE, while on the Nasdaq Composite, advancing issues had a 1.39-to-1 advantage.

Markets Have a Muted Session

After a post-election rally, U.S. stocks have struggled in recent weeks, with the S&P 500 falling in four of the previous five weeks. The labor market projects a resilient economy, but stubborn inflation and hawkish comments from Fed officials have kept investors worried about the pace at which the central bank is currently inclined to cut rates. However, over the past couple of sessions, markets have corrected a bit from the overselling mode.

U.S. 10-Year Treasury Yield Hovers Around 14-Month High

U.S. 10-year treasury yields remained elevated, hovering around the 14-month high level touched in the previous session, settling near 4.784%. Yields have continued to grow since the turn of the year and have risen around 20 basis points.

Headline PPI Comes in Cooler

Per the U.S. Bureau of Labor Statistics, the Producer Price Index for final demand (“PPI”) advanced 0.2% in December. In November, PPI came in at 0.4%. Core PPI remained unchanged in December.

While this number coming in cooler boosted investor morale, they are currently awaiting Consumer Price Index (CPI) numbers due Wednesday, with CPI being the widely accepted benchmark for inflation. The wait and watch mood resulted in a mixed, choppy session for share trading. Utilities and financial stocks made the most of the session’s gains.

Consequently, shares of American Strategic Investment Co. NYC and Blackstone Inc. BX jumped 5.2% and 2.1%, respectively. NYC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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