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Market Update

U.S. Inflation Rises 0.2%, Zebra Tech to Buy Motorola Solutions' Division

Author: Nichole Harper
Last Update: 11:14 AM ET April 15 2014

11:10 AM New York – U.S. stocks struggled to advance as earnings season gain momentum. U.S. consumer prices reported by the government rose 0.2% in March. Zebra Technologies agreed to acquire enterprise division from Motorola Solutions for $3.45 billion in cash.

Earnings season gain momentum on Wall Street and stocks reversed a weeklong slump after Coca-Cola Company and Johnson & Johnson reported better than expected results.

Deal making was also in news after Zebra Technologies Corp agreed to acquire a unit of Motorola Solutions Inc for $3.45 billion.

S&P 500 index increased 2.01 to 1,832.27 and the Nasdaq Composite Index eased 19.76 to 4,0002,59.

U.S. consumer prices increased 0.2% in March after rising revised 0.1% in February, the Labor Department said today.

The reported consumer price increased 1.5% form a year ago to the month, according to the data. It is widely perceived that the government reported inflation measures understates the inflation felt by most families.

The inflation tracked by Ticker.com suggests a family of five in ten largest cities in the U.S. face as high as 8% inflation.

The government reported core prices excluding volatile food and energy categories, increased 0.2% in March after rose 1.7% in twelve-month period.

Food prices gained 0.4% and prices for apparel, cars and cable television services also increased.

The government reported measure of inflation increased 1.5% in 2013 after rising 1.8% in 2012. For all of 2013, Ticker.com measure of inflation rose 8.4%.

World Markets

European markets were under pressure after violence in Ukraine spread to more cities in the eastern region and tensions between the NATO nations and Russia rose.

SAB Miller Plc increased 2% after the second largest brewer said it is looking to sell its stake in Tsogo Sun Holdings Ltd for $1.04 billion. In addition, Anglo-Australian miner Rio Tinto offered positive quarterly production outlook.

Market indexes in Tokyo closed higher and the yen gained 0.3%. Indexes advanced after a seven-day weakness and financials led the charge.

The Nikkei 225 Stock Average gained 86.65 or 0.6% to 13,996.81 and the Topix index dropped 15.40 or 1.3% to 1,134.09.

The yen strengthened to 101.80 against the U.S. dollar.

U.S. Stocks in Review

Zebra Technologies Corp (ZBRA) dropped 8% or $5.54 to $62.72 after the maker of special printing devices for automatic identification agreed to acquire enterprise business of Motorola Solutions Inc.

The printer maker agreed to pay $3.45 billion in cash for the division that represents one third of Motorola Solutions’ business that has struggled in the last two years as retailers delay purchases of inventory tracking devices.

Motorola Solutions (MSI) fell 1.3% or 85 cents to $62.94.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc