NEW YORK, Feb 18: US stocks swung lower on Friday as a hotter-than-expected report on wholesale inflation and a disappointing outlook from computer maker Dell prompted profit taking from a three-day rally.

The Dow Jones Industrial Average drifted down 27.05 points (0.24 per cent) to 11,093.63 and the Nasdaq fell 10.94 points (0.48 per cent) to 2,283.69 at 1600 GMT.

The broad-market Standard and Poor’s 500 index shed 4.22 points (0.33 per cent) to 1,285.16.

Data early Friday showed wholesale prices increased 0.3 per cent in January and the core rate up 0.4 per cent, the biggest gain in a year.

Also feeding inflation concerns, crude oil prices rebounded. New York’s main contract rose 99 cents to 59.45 dollars a barrel at 1600 GMT.

Meanwhile investors digested news that Dell topped estimates for earnings in its most recent quarter but offered a weak outlook for the coming months.

“The producer price index was a negative reading but the market is not reacting too badly because Fed chief Ben Bernanke already warned us about this in his testimony,” said Peter Cardillo, chief market analyst at SW Bach.

The market is expecting the Fed to continue raising rates in the short term to combat inflation.—AFP