NEW YORK (CNNMoney)
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Compsite all opened lower before bouncing up. The Nasdaq is leading the charge, up over 0.4% thanks to strong gains from Tesla (TSLA) and Netflix (NFLX, Tech30).
Here's what to watch:
1. Inflation: Today's the first day of the Federal Reserve's big meeting, and investors hotly anticipated the latest inflation data from the Bureau of Labor Statistics. May consumer prices were up 0.4% from April and 2.1% annually, beating economist expectations.
The so-called "core inflation" (which excludes volatile categories like food and energy) rose 0.3% from last month and 2% annually, also beating expectations.
Although the Fed is keeping a close eye on inflation and unemployment, this month's price data likely won't be enough to cause any immediate Fed changes. Fed Chair Janet Yellen has said she would be willing to see core inflation rise as much as 2.5%.
Related: Inflation and 16 other economic stats that illustrate the recovery
2. Extra Coke fizz: Coca Cola (CCH) had quite the morning after activist investor David Winters of Wintergreen Advisors made speculative comments on Fox Business News that Coke could go private. Winters has been a vocal critic of the company lately, especially over the executive compensation plans.
Coke stock shot up as much as 1% at the opening bell on the news.
Warren Buffett, Coke's largest shareholder via his Berkshire Hathaway (BRKA) company, immediately responded telling CNBC there was "absolutely no chance" of that happening. Shares have since fallen back.
3. Housing Stutters: Investors also got data this morning on housing starts. It wasn't pretty. There was 6.5% drop in starts, falling well short of expectations. Although the sector has been having a good year, some analysts are still worried.
"The sector is clearly having some difficulty breaking past the million mark firmly, as it continues to face a number of high obstacles... higher prices, higher borrowing costs, tougher requirements to secure a mortgage," wrote BMO Capital Markets in a note to investors.
Shares in homebuilders Toll Brothers (TOL), PulteGroup (PHM) and Lennar (LEN) all opened more than 1% lower.
Related: More homeowners becoming landlords
4. Amazon calls AT&T: Amazon (AMZN, Tech30) announced this morning that its new smartphone would only be carried by AT&T (T, Tech30). Both stocks are up slightly.
5. A good day for Elon Musk: In a reversal, New Jersey's lawmakers said that electric car manufacturer Telsa (TSLA) would again be able to sell its electric cars in that state directly to customers. A previous bill barred the practice.
"Tesla is pleased that the New Jersey State Assembly has sent an overwhelming message of support for consumer freedom of choice," said Diarmuid O'Connell, Tesla's vice president of corporate and Business Development, in a statement.
The company's shares are over 3% higher, building on momentum from yesterday's gains after the company said it would share its patent information. Tesla stock is up over 50% for the year.
6. Foreign Stocks: Emerging market investors might want to keep an eye on Argentina's stock market to see how much further things might fall after yesterday's 10% drop. The US Supreme Court declined to hear a major part of the country's appeal of a lower court ruling ordering it to pay creditors from a 2001 default who are seeking full payment. Argentinian bond yields rose, as did the cost of insuring them.
Elsewhere in the world, Asian stocks were mixed, with Chinese stocks lower, India's Sensex closing 1.3% higher and Japanese stocks positive. European stocks are also mixed, with the FTSE 100 index flat in afternoon trading.
First Published: June 17, 2014: 10:04 AM ET
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