In other corporate news, Boeing (BA Quote - Cramer on BA - Stock Picks) was a winner on the Dow after the company said it will push back deliveries of its 787 Dreamliner by about three months, a delay that's shorter than some observers had feared would be necessary. Boeing finished the session up 2.6% at $79.87.
As for the data, the Labor Department got things started by saying the December consumer price index, which measures inflation on the retail level, rose a greater-than-expected 0.3%. The core number, excluding food and energy, advanced 0.2% and met estimates.
The core CPI figure, a key measure of inflation, is now up 2.4% over the last year, putting it above the Fed's so-called comfort zone. The report follows Tuesday's producer price index, which unexpectedly fell 0.1% last month. The core PPI rose 0.2%, as had been forecast.
U.S. Treasury prices retreated. The 10-year note eased 15/32 in price, yielding 3.73%. The 30-year bond was off 1-3/32 in price, yielding 4.33%. The dollar, meanwhile, rallied against the world's major currencies.
Also on the economic docket, the Fed said industrial production was unchanged last month. Capacity utilization fell to 81.4% from 81.6% in November. Economists had expected industrial production to fall 0.2% in December.
The major averages were back and forth following the release of the Fed's regional survey known as the beige book. The anecdotal report on economic conditions in 12 districts around the country will be considered at the Federal Open Market Committee's policy meeting in two weeks.
According to the document, economic activity expanded at a "slower pace" than in the previous survey period. The report noted that most retailers saw subdued holiday spending and that a glut of available homes kept pressure on housing prices and construction activity. On the positive side, reports on tourism were strong.
"The pace of sales continued to be sluggish, and inventories persisted at historically high levels according to most Districts," the beige book read. "Residential mortgage lending continued to contract in all Districts while refinancing activity varied."
Commodity futures fell hard. Gold pulled back from near-record levels, shedding $20.60 to $882 an ounce. Oil slumped after the Energy Department's inventory report showed a greater-than-expected rise in crude inventories last week. Oil ended down $1.06 at $90.84 a barrel.
Commodity-related stocks were punished by the declines.
Harmony Gold (HMY Quote - Cramer on HMY - Stock Picks) and
Yamana Gold (AUY Quote - Cramer on AUY - Stock Picks) fell more than 7%, while
Exxon Mobil (XOM Quote - Cramer on XOM - Stock Picks),
Halliburton (HAL Quote - Cramer on HAL - Stock Picks) and
Chevron (CVX Quote - Cramer on CVX - Stock Picks) lost 2.3% or more.
Robert Holmes
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