FOX Business: Capitalism Lives Here

Wall Street slumped Thursday, snapping a two-day rally, as traders reacted to mixed earnings and economic data.

Today's Markets

The Dow Jones Industrial Average fell 64.9 points, or 0.39%, to 16417, the S&P 500 dipped 2.5 points, or 0.13%, to 1846 and the Nasdaq Composite rose 3.8 points, or 0.09%, to 4219.

The bulls came back to life over the past two days, with the Dow posting a back-to-back triple-digit rally. The gains have been driven by strong bank earning. That string of beats continued when Goldman Sachs (GS), the biggest U.S. investment bank, posted results that blew past expectations. However, Citigroup's (C) results, however, trailed estimates.

Elsewhere on the corporate front, Best Buy (BBY) shares nose dived 30% after the struggling tech retailer revealed disappointing holiday results. Carlyle Group (CG) offered $4.15 billion to buy Johnson & Johnson's (JNJ) Ortho-Clinical Diagnostics unit.

There are several key economic reports due out on the day. 

The Labor Department said consumer-level inflation rose 0.3% in December from the month prior, matching Wall Street’s expectations. Excluding the food and energy components, prices rose 0.1%, also matching views.

Another report from Labor showed the number of Americans filing for first-time jobless benefits fell last week to 326,000 from a downwardly revised 328,000 the week prior. Wall Street was looking for 328,000 new claims, down from an initially-reported 330,000.

The Philadelphia Fed’s gauge of manufacturing activity in the U.S. mid-Atlantic region jumped to 9.4 in January from 6.4 the month prior. Wall Street was looking for a reading of 8.6.

Meanwhile, the National Association of Home Builders’ measure of homebuilder sentiment fell to 56 in January from 57 the month prior. Wall Street was looking for a reading of 58.

In commodities, U.S. crude oil futures rose 15 cents, or 0.16%, to $94.32 a barrel. Wholesale New York Harbor gasoline fell 0.54% to $2.612 a gallon. Gold slipped to $1,237 a troy ounce.

Follow Adam Samson on Twitter @adamsamson.