US STOCKS-Wall St trades mixed on Fed tightening fears, Nvidia weighs

Herbert Lash and Bansari Mayur Kamdar
·4 min read

* U.S. Senate approves bill on climate change, drug costs

* Nvidia slides as slump in gaming demand hits Q2 revenue

* Tyson Foods down on quarterly profit miss

* Palantir drops on forecast cut

* Indexes mixed: Dow up 0.14%; S&P, Nasdaq slip (Adds byline, comment, fresh prices)

By Herbert Lash and Bansari Mayur Kamdar

Aug 8 (Reuters) - U.S. stock indexes were mixed on Monday after blockbuster jobs data last week reinforced expectations the Federal Reserve will crack down on inflation, while a revenue warning from chipmaker Nvidia was another reminder of a slowing U.S. economy.

Stocks edged off the day's highs as last week's blowout labor market report was initially seen as a sign the economy could withstand aggressive interest rate hikes by the Fed to tame inflation running at four-decade highs.

Investors now await consumer price data for July to be released on Wednesday to gauge whether the Fed might ease a bit in its inflation fight and provide a path for the economy to grow.

"The CPI data will help to confirm if the Fed's tightening efforts have been successful in starting to tame inflation or if continued Fed tightening is needed," said Robert Schein, chief investment officer at Blanke Schein Wealth Management.

The Dow Jones Industrial Average rose 45.37 points, or 0.14%, to 32,848.84, the S&P 500 lost 5.55 points, or 0.13%, to 4,139.64 and the Nasdaq Composite dropped 24.65 points, or 0.19%, to 12,632.90.

The S&P 500 has bounced back 14% from mid-June lows, but signs of persistent inflation could further bolster the Fed's case for aggressive monetary policy tightening.

Anthony Saglimbene, chief market strategist at Ameriprise in Troy, Michigan, said the market will pull back at some point as traders test the recent rebound.

"If we can hold those mid-June levels, it would be another sign that maybe this is more than just a bear market rally and the market is actually trying to recover and anticipate a better environment ahead," Saglimbene said.

"Maybe we can get a little bit higher by year end, but that's if everything lines up perfectly," he said. "We're fairly valued right now based on the cross currents in the market."

U.S. rate futures have priced in a 65.5% chance of a 75-basis-point hike at the Fed's next meeting in September, up from about 41% before the labor market data beat market expectations.

The information technology sector fell 0.9% after chipmaker Nvidia Corp slid 8.0% as the company said it expects second-quarter revenue to decline 19% from the prior quarter to about $6.7 billion due to weakness in gaming.

The Philadelphia SE Semiconductor index declined 2.3%.

The tech-heavy Nasdaq edged lower in choppy trading after rising as much as 1.6% in early trading.

Offsetting losses on the Nasdaq, megacap Tesla rose 2.0% as the U.S. electric-car maker signed contracts worth about $5 billion to buy battery materials from nickel processing companies in Indonesia, according to a CNBC report.

Shares of U.S. automakers jumped after the U.S. Senate on Sunday passed a $430 billion bill to fight climate change that created a $4,000 tax credit for used electric vehicles and provides billions in funding for their production.

Rivian Automotive Inc rose 5.75%, Ford Motor Co gained 4.38%, General Motors Co added 5.21% and Lordstown Motors Corp advanced 5.56%.

Signify Health Inc jumped 12.5% on a media report that CVS Health Corp was looking to buy the health technology company.

Palantir Technologies Inc dropped 12.5% after the data analytics software company lowered its annual revenue forecast as the timing of some large government contracts remained uncertain.

Tyson Foods Inc fell 7.9% after missing quarterly profit expectations.

Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.56-to-1 ratio favored advancers.

The S&P 500 posted eight new 52-week highs and 29 new lows; the Nasdaq Composite recorded 92 new highs and 22 new lows. (Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Shounak Dasgupta and Cynthia Osterman)

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Tesla Earnings Fall To Lowest Since 2021. Tesla Stock Surges Late On 'Affordable' EV.

    Tesla earnings tumbled below lowered expectations. Tesla stock jumped late as the EV giant signaled an affordable EV is still it its plans. Elon Musk looms.

  • Dow Jones Futures: Stock Market Rallies, But Big Tests Loom; Tesla Jumps On Affordable EV, Elon Musk

    The rally attempt gained steam Tuesday. Tesla leapt late as it said an "affordable" EV is coming. Elon Musk is on the call.

  • Rights concerns, costs undermine Turkey-EU migrant deal, say auditors

    Turkey's poor human rights record and economic factors are undermining the effectiveness of the European Union's migration deal with Ankara, EU auditors said on Wednesday. Under the 2016 deal, Ankara agreed to take back migrants who had crossed from its territory to Europe in return for EU aid to help fund more than four million refugees on Turkish soil. The EU, which faces elections in June for the European Parliament in which illegal migration promises to be a big issue, has sealed agreements similar to the Turkey scheme with Tunisia, Egypt, Mauritania and others.

  • Top-seeded Celtics, Thunder expecting to see different versions of Heat, Pelicans in Game 2s

    Jaylen Brown wasn’t sure what happened when he saw Celtics teammate Jayson Tatum take a hard foul from the Heat's Caleb Martin and crash to the TD Garden floor late in Boston’s first round series-opening win over Miami on Sunday. Boston will hope to maintain its physical advantage over Miami in Game 2 on Wednesday night while also expecting to see adjustments from a Heat team that struggled offensively with Jimmy Butler (knee) and Terry Rozier (neck) sidelined.

  • Trans Mountain expects first ship to load from expanded pipeline in second half of May

    The first ship carrying crude from the expanded Trans Mountain pipeline is expected to load at the Port of Vancouver in the second half of May, the company building the project said on Tuesday. Final line fill will be completed in early May, Trans Mountain said in an email. The C$30.9 billion ($22.62 billion) expansion project, bought by the Canadian government in 2018 to ensure it went ahead, has struggled with years of regulatory delays and cost overruns.

  • Tesla sees biggest revenue drop since 2012 but company shares still surge

    Shares are up despite a revenue decline of 9% after company said it expects to release new vehicle models sooner than expected

  • Lucky move that led to a love of marine wildlife

    Steve Truluck swapped engineering in London for whale and dolphin expertise in north east Scotland.

  • Warrant out for disgraced former cop on run with baby son after ex-wife and teenage girlfriend murdered

    Elias Huizar has taken his baby boy and fled for the US-Mexico border, police say

  • Matheson council is supposed to meet tonight, here's what's on the agenda

    BLACK RIVER-MATHESON - Matheson council is supposed to meet tonight (April 23). It's been months since the group last met and the agenda items are stacking up. A CUPE Local 1490 rally is also set to take place this afternoon and the township has closed its office for the remainder of the day. The rally is for the ongoing labour dispute between the union and Township of Black River-Matheson. Fourteen CUPE members were locked out by the township in October. The members went on strike when the town

  • Two people confirmed to be on board Douglas DC-4 plane that crashed into river near Fairbanks, Alaska

    The model of airplane was first manufactured during World War II

  • Abdul Fatawu brings Leicester close to Premier League promotion as Southampton settle for play-offs

    Leicester 5-0 Southampton: Fatawu’s hat-trick brings the Foxes to the brink of automatic promotion as Jamie Vardy and Wilfred Ndidi also got on the scoresheet.

  • Auditors say it's hard to tell how Turkey is using EU refugee funds. Some officials aren't helpful

    European Union auditors said on Wednesday that they are unable to establish whether some of the billions of euros the bloc has given to Turkey to help it cope with Syrian refugees is actually having any impact. Under a deal concluded between EU leaders and Turkey in 2016, the bloc committed to provide at least 6 billion euros ($6.4 billion) to Turkey to help it cope with migrants crossing in from Syria. Turkey in turn committed to stop migrants leaving its territory for Europe.

  • Report suggests many homeowners couldn't afford their house if they purchased it today

    Debra Mimmenger thinks if she were to buy her home today, she wouldn’t be able to afford it. “I put too much in it, and the house is too expensive now,” said Mimmenger. “If I were to actually buy my house now, I would have to have probably two jobs or cut my retirement.” In fact, a recent report from Redfin found nearly two of every five homeowners don’t believe they could afford to buy their own home if they were purchasing it today.

  • UPDATE 1-Trans Mountain expects first ship to load from expanded pipeline in second half of May

    The first ship carrying crude from the expanded Trans Mountain pipeline is expected to load at the Port of Vancouver in the second half of May, the company building the project said on Tuesday. Final line fill will be completed in early May, Trans Mountain said in an email. The C$30.9 billion ($22.62 billion) expansion project, bought by the Canadian government in 2018 to ensure it went ahead, has struggled with years of regulatory delays and cost overruns.

  • Wray places first at Baldonnel time trial

    Windy conditions welcomed the eight riders participating in Blizzard Bicycle Club’s time trial in Baldonnel on April 21st. Nigel Wray won the time trial after a gruelling 25-kilometre ride, with a time of 37:51. Dan Webster finished in second place at 49:01, and Calvin McCracken crossed the finish line in third with a time of 49:39. Meanwhile, Heather McCracken was the top female, finishing at 52:09. Wray’s latest victory continues his strong start to the season. He won all six stages of the clu

  • NWACC in Bentonville closing early due to water main break

    The Northwest Arkansas Community College campus in Bentonville announced it will close early Tuesday due to a water main break.

  • $62K helping people transition back to work

    New funding is helping people transition back to work. The Cochrane District Social Services Administration Board (CDSSAB) is receiving $62,500 for a project to help people transition back to work. “With respect to life skill development and coaching, how do we keep people motivated to get off of social assistance and to take jobs that are available,” said Christine Heavens, CDSSAB director of community development and services, at the April 18 CDSSAB meeting. The CDSSAB applied to the Ministry,

  • Kuna man sentenced after firing gun near Boise park, forcing alerts at BSU football game

    The incident occurred last October near Julia Davis Park downtown.

  • Music stars honoured at first 'Brit Awards of the North'

    Louis Tomlinson is among the winners at a new ceremony celebrating music from the north of England.

  • B.C. government to set out housing targets for 20 more communities

    VICTORIA — The British Columbia government has named another 20 cities and towns as priority communities for housing targets over the next five years. The government says in a statement the communities are in high-growth, high-need regions of B.C. Housing Minister Ravi Kahlon says the goal is to complement work those cities are already doing while they implement recent provincial legislative changes to build more homes. The province named 10 priority cities last year, based on the areas of great