Consumer companies fell sharply after inflation data.

The Labor Department reported Tuesday that consumer prices rose 3.1% in January from a year earlier, slowing from the December gain of 3.4% but substantially higher than the economists' average prediction of 2.9%.

The revival of inflation was a negative development for home builders. SPDR S&P Homebuilders exchange-traded fund fell by 3.8%, trimming gains for the year to date to around 2.5%.

Investors had bet that the specter of inflation had been defeated and positioned themselves for lower Federal Reserve borrowing rates and, indeed, mortgage rates.

Upward inflation lifted WK Kellogg's prospects. The cereal maker's shares rallied after it said a 7.5% increase in prices drove quarterly profit higher.

Coca-Cola fell, but not by as much as the broad market, after the soda maker organic sales, which strip out the impact of mergers and currency fluctuations, 12% from a year earlier. Price increases accounted for much of that but, encouragingly, underlying case volume rose 2% from a year earlier.

Marriott International shares fell after the hotel operator's fourth-quarter revenue fell short of analysts' estimates, although its profit in the latest quarter rose.

Shares of Hasbro slid after the toy maker reported fourth-quarter results that fell well short of expectations, amid sharp drops in consumer and entertainment sales and as inventory was halved.

Jetblue Ariways surged after activist investor Carl Icahn disclosed a roughly 10% stake in the discount carrier.

Retail giant Walmart entered talks to buy smart television-manufacturer Vizio for more than $2 billion.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

02-13-24 1725ET