Wall Street stocks were mixed after a choppy session as traders digested better-than-expected inflation data and looked ahead to bank earnings.

The producer price index rose 0.2 percent last month, a reassuring figure to investors concerned about inflation risk.

But the recent jump in the 10-year US Treasury note, which edged down on Tuesday, has left investors worried that equities may be overvalued in light of the risk of higher interest rates for longer, said Art Hogan of B. Riley Wealth Management.

The Dow Jones Industrial Average finished up 0.5 percent at 42,518.

The broad-based S&P 500 edged up 0.1 percent to 5,842, while the tech-rich Nasdaq Composite Index declined 0.2 percent to 19,044.

Hogan said Wednesday's deluge of bank earnings should show strong profitability. A key question will be the companies' expectations for the incoming Trump administration in Washington.

"There's a lot of interest ... in how they see the future," Hogan said of expectations that Trump could ease bank regulation.

Among individual companies, Eli Lilly dropped 6.6 percent after it said 2024 revenues would be lower than previously thought.

Biogen sank 4.7 percent after Sage Therapeutics said the company had submitted an unsolicited bid to purchase the smaller company. Sage dropped 1.2 percent.

But KB Home rose 4.8 percent after reporting higher earnings and profits, describing a solid housing market.

"Buyers continued to demonstrate a desire for home ownership and housing market conditions improved relative to last year, despite ongoing mortgage interest rate headwinds," said KB Homes Chief Executive Jeffrey Mezger. (AFP)