US STOCKS-S&P 500, Nasdaq steady after mixed results from JPMorgan, Delta Air

Indexes: Dow down 0.33%, S&P 500 flat, Nasdaq up 0.14% JPMorgan Chase beats estimates for Q4 profit Delta’s profit forecast disappoints December CPI rises 2.7% YoY (Updates with morning prices) By Medha Singh and Pranav Kashyap Jan 13 (Reuters) - The S&P 500 and the Nasdaq were steady on Tuesday after a largely in-line inflation report sustained expectations of interest rate cuts this year, while investors weighed mixed quarterly results from JPMorgan and Delta Air Lines. Excluding volatile food and energy components, U.S. consumer prices increased 0.2% in December from the prior month, softer than economists’ forecast of a 0.3% increase. Headline and core CPI rose 2.6% year-on-year last month after rising by the same margin in November. The data solidified Fed bets on at least two more 25-basis-point interest rate cuts between June and December, with traders seeing a small chance of a third, per LSEG data. “The Fed is likely to take its time and absorb more data, especially given the noise we’ve seen in the recent data as a result of the government shutdown,” said Skyler Weinand, chief investment officer, Regan Capital. EARNINGS SEASON IN SPOTLIGHT The largest U.S. lender, JPMorgan (JPM.N) , beat quarterly profit estimates as it unofficially kicked off the reporting season. However, its shares dropped 1.1% in choppy trading after the bank said a proposed cap on credit card interest rates will hurt U.S. consumers and the economy. Other big banks, due to report later this week, are widely expected to post stronger quarterly results, helped by a pickup in dealmaking. Delta Air Lines (DAL.N) shares fell 2.6% as the mid-point of its 2026 profit forecast fell short of analysts’ expectations. Peer American Airlines (AAL.O) slipped 1%. At 09:39 a.m. the Dow Jones Industrial Average (.DJI) fell 162.04 points, or 0.33%, to 49,428.16, the S&P 500 (.SPX) gained 3.13 points, or 0.04%, to 6,980.40 and the Nasdaq Composite (.IXIC) gained 32.21 points, or 0.14%, to 23,766.12. As the earnings season gets underway, the S&P 500 is hovering just under 30 points shy of the 7,000 milestone, while the Dow sits about 400 points away from the historic 50,000 mark. SMALL CAPS GET FRESH BID Investors have largely brushed off geopolitical flashpoints, from Washington’s saber-rattling in Iran to talk of Greenland and Venezuela, choosing instead to ride the wave of artificial intelligence optimism and upbeat earnings expectations that have powered major indexes to fresh highs. The energy sector (.SPNY) rose 1% as oil prices surged on heightened concerns surrounding major producer Iran and potential supply disruptions. (O/R) Lofty valuations in megacaps have sent bargain hunters down the market-cap ladder, fueling a rally that has left the Russell 2000 up 6.2% in the first seven trading days of this year, while the S&P 500 rose 1.9%, as of Monday’s close. The index hit a record high on the day, and was set for its fourth session of advances - its longest daily winning streak since late-November. “We’ve seen fits and starts from small caps for years now. We need to see a little more to believe this is finally the time for small caps,” said Ryan Detrick, chief market strategist at Carson Group in Omaha. Meanwhile, the U.S. government will invest $1 billion in L3Harris Technologies’ (LHX.N) rocket motor business, sending its shares up 2%. Advancing issues outnumbered decliners by a 1.67-to-1 ratio on the NYSE and by a 1.09-to-1 ratio on the Nasdaq. The S&P 500 posted 34 new 52-week highs and one new low, while the Nasdaq Composite recorded 72 new highs and 19 new lows.