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Previous inflation data have influenced Federal Reserve decision-making.

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U.S. stocks were mixed Tuesday morning, after the June Consumer Price Index showed inflation remained hot, while corporate earnings season got under way with banking heavyweights reporting results.

By midmorning, the Dow Jones Industrial Average was down 80 points, or 0.25%, while the S&P 500 was little changed and the Nasdaq Composite advanced 0.25%. The Dow, S&P 500, and Nasdaq all set fresh records on Monday.

U.S. consumer prices rose 5.4% in June from a year ago, above expectations and the largest increase since 2008. A bulk of the inflation came from price increases in consumer services like airfares and hotels as well as used cars, according to Morgan Stanley economists.

Markets were signaling that long-term inflation isn’t a concern. The 10-year Treasury yield was down a tick to 1.35%. The two-year Treasury yield rose to 0.25% from a 0.23% close Monday. That signals markets may be bracing for the Federal Reserve to hike interest rates, which could keep inflation lower in long-term. “Every successive high inflation read will make it harder and harder for the Fed to remain accommodative,” writes Mike Loewengart, managing director of investment strategy at ETrade.  

Growth stocks were outperforming value, a common dynamic when long-dated bond yields are lower. Lower long-dated yields make future profits less valuable—and growth companies are valued on a stream of profits farther into the future than value firms.

In Asia, Tokyo’s Nikkei 225 rose 0.5%, while Hong Kong’s Hang Seng climbed 1.6%. The Shanghai Composite lifted 0.5%. The FTSE 100 in London was little changed as the pan-European Stoxx 600 was down 0.1%.

The price of WTI Crude oil was flat at $74.13 a barrel.

JPMorgan Chase & Co. (ticker: JPM) stock fell 2% after the company reported a profit of $3.78 a share, beating estimates for $3.21 a share, on revenue of $31.4 billion, above expectations for $29.9 billion. 

Goldman Sachs Group (GS) stock fell 2.2% after the bank reported quarterly earnings of $15.02 a share, beating estimates for $10.24, on revenue of $15.4 billion, above expectations for $12.17 billion. 

PepsiCo  (PEP) stock rose 2.5% after the beverage giant said it earned $1.72 a share in the latest quarter, beating estimates for $1.53, on sales of $19.2 billion, above expectations for $17.9 billion. 

Nokia stock climbed after the Finnish telecommunications group said it expects to revise upwards its prior guidance for 2021 when it reports quarterly earnings at the end of the month. The U.S.-listed shares in Nokia were up 8.6%.

Boeing  (BA) dropped 3%, even after the stock was upgraded to Peer Perform  from Underperform at Wolfe Research.

United Airlines Holdings  (UAL) stock dropped 2.8% after getting downgraded to Hold from Buy at Argus.  

Write to Jacob Sonenshine at