January’s Higher-Than-Expected Inflation Data Spooks Investors
02:45 Share

My dad works in B2B marketing. He came by my school for career day and said he was a big ROAS man. Then he told everyone how much he loved calculating his return on ad spend.

My friend's still laughing at me to this day. Not everyone gets B2B, but with LinkedIn, you'll be able to reach people who do. Get $100 credit on your next ad campaign. Go to linkedin.com slash results to claim your credit. That's linkedin.com slash results. Terms and conditions apply. LinkedIn, the place to be, to be. Here's your closing bell brief for Wednesday, February 12th. I'm Danny Lewis for The Wall Street Journal.

U.S. stocks fell after the first inflation readout for 2025 came in higher than expected, spooking investors. The Dow Jones Industrial Average fell 225 points to close at 44,369, and the S&P 500 lost 16.5 points. But the Nasdaq edged up six points.

January's consumer price index rose 3 percent from a year earlier, an acceleration from December's rate. The report is particularly important as President Trump imposes new tariffs on imports that could complicate the Federal Reserve's efforts to bring down inflation. During his second day of testimony before Congress, Fed Chair Jerome Powell said the report is the latest reminder that the central bank has not quite hit its goals.

In individual companies today, shares of CVS Health surged nearly 16% after its latest earnings beat Wall Street expectations. The healthcare company said it has seen significant progress stabilizing its Aetna insurance unit and projected improved results in 2025. Intel stock rose 7.2% after an analyst reported the company is discussing a potential factory partnership with Taiwan Semiconductor Manufacturing Company.

In a note, Baird said the factory could be spun off from Intel and run by TSMC under the company's joint ownership. Intel didn't immediately respond to requests for comment, and TSMC declined to comment. And shares of Lyft fell almost 8% after its bookings forecast for this quarter disappointed investors. The ride-hailing company said users were taking fewer and shorter rides after the winter holidays. Stock in its rival Uber rose about 3%.

We'll have more coverage of the day's news on the WSJ's What's News podcast. You can add it to your playlist on your smart speaker or listen and subscribe wherever you get your podcasts.