Stock Market Live January 13: S&P 500 (VOO) Rises on Tame Inflation Data

"The U.S. Bureau of Labor Statistics reported Tuesday that the Consumer Price Index rose only 0.3% month-on-month in December, and only 2.7% over the last 12 months. This was 0.1 percentage point less than expected. Core inflation (which doesn't count food and energy prices) rose at a 2.6% annual rate, also less than expected. The good news gives the Federal Reserve extra room to lower interest rates if it wants to -"

"This morning, defense company and S&P 500 component L3Harris ( NYSE: LHX) announced it will spin off its rocket motors business, previously known as Aerojet Rocketdyne before L3 bought it. The company also said the Department of Defense (aka now as "the Department of War") will invest $1 billion in the spinoff by buying convertible preferred stock. This stock will convert to common stock after the IPO."

U.S. consumer inflation cooled in December, with the Consumer Price Index rising 0.3% month-on-month and 2.7% year-over-year, slightly below expectations. Core inflation, excluding food and energy, rose at a 2.6% annual rate, also below forecasts. The softer inflation reading gives the Federal Reserve additional room to lower interest rates, and economists currently expect at least two rate cuts this year. The Vanguard S&P 500 ETF (VOO) traded up about 0.1% in early trading. L3Harris announced a spinoff of its rocket motors business, formerly Aerojet Rocketdyne, and said the Department of Defense will invest $1 billion in convertible preferred stock that will convert to common shares after a planned H2 2026 IPO.

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