(Sharecast News) - The strongest rise in wholesale prices in three years limited upside for stocks on Thursday, with markets flatlining after hopes for an imminent interest-rate cut propelled indices to record highs the previous session.
Nevertheless, while indices were relatively unchanged by the close - having erased earlier losses - the S&P 500 still managed to eke out a 0.03% gain to settle at a new all-time high of 6,468.54.
The Dow and the Nasdaq were also flat, but ended marginally in negative territory, with the latter having reached a new peak on Wednesday.
July's producer price index revealed annual producer inflation rose by 3.3% year-on-year last month, according to the Bureau of Labor Statistics, the largest 12-month increase since February. That was well ahead of the 2.4% increase registered in June and significantly higher than the 2.5% consensus forecast.
On a monthly basis, producer prices rose 0.9% against June's flat reading, also ahead of the 0.2% increase expected by economists and the highest rate on month-on-month growth since June 2022.
July's PPI reading was hot on the heels of Tuesday's consumer price index, which revealed that inflation came in lower than estimates last month, raising hopes that the Federal Reserve will act to loosen monetary policy at its meeting next month.
"Inflation risks in the US are becoming increasingly two-sided due to the effects of tariffs," said analyst Michael Hewson from MCH Market Insights. "You only have to look at today's PPI numbers to understand that inflation pressures are far from benign. The US economy may well be slowing however it's not due to interest rates being too high, but due to concerns about rising prices."
In other economic data, US jobless claims slipped to 224,000 last week, down from the prior week's upwardly revised 227,000 print, versus market expectations of an increase to 228,000, while continuing claims decreased by 15,000 to 1.953m, better than the 1.96m print expected by economists.
Market movers
Shares in Deere & Co tumbled despite the heavy machinery giant marginally topping third-quarter forecasts, as its sales outlook was trimmed on the back of tough macro conditions. The company, known for its agricultural and forestry machinery under the brand John Deere, said it now expected net profits to be $4.75bn-5.25bn for the year to end-September, with the midpoint slightly lower than previous guidance of $4.75bn-5.5bn.
Networking company Cisco traded lower on the back of fourth-quarter results that only narrowly beat market estimates. While Cisco also impressed with revenue guidance for the first quarter, investors may have been choosing to focus on comments around tariffs, which the company said had created "complex" operating conditions.
Meanwhile, luxury conglomerate Tapestry dropped sharply after disappointing the market with its full-year targets, with EPS estimates of $5.30-5.45 coming in short of the $5.49 consensus forecast.
Dow Jones - Risers
Intel Corp. (INTC) $23.86 10.82%
Dow Chemical Co. (DOW) $23.37 1.96%
Amgen Inc. (AMGN) $290.29 1.75%
Walgreens Boots Alliance, Inc. (WBA) $12.04 1.52%
McDonald's Corp. (MCD) $308.71 1.19%
JP Morgan Chase & Co. (JPM) $293.95 1.18%
Caterpillar Inc. (CAT) $417.68 0.96%
Visa Inc. (V) $345.47 0.85%
Apple Inc. (AAPL) $232.83 0.48%
Goldman Sachs Group Inc. (GS) $747.05 0.32%
Dow Jones - Fallers
Cisco Systems Inc. (CSCO) $69.30 -3.50%
3M Co. (MMM) $156.81 -2.12%
Home Depot Inc. (HD) $400.36 -1.67%
Salesforce.Com Inc. (CRM) $233.37 -1.54%
Microsoft Corp. (MSFT) $522.48 -1.44%
Coca-Cola Co. (KO) $69.57 -1.27%
International Business Machines Corporation (CDI) (IBM) $237.05 -1.26%
Procter & Gamble Co. (PG) $153.77 -1.06%
Nike Inc. (NKE) $76.41 -1.02%
Verizon Communications Inc. (VZ) $43.50 -0.48%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $26.69 12.70%
Intel Corp. (INTC) $23.86 10.82%
DENTSPLY Sirona Inc. (XRAY) $13.87 6.28%
Skyworks Solutions Inc. (SWKS) $75.36 5.58%
Incyte Corp. (INCY) $86.16 4.85%
LKQ Corporation (LKQ) $31.54 4.60%
Biogen Inc (BIIB) $134.94 4.14%
Amazon.Com Inc. (AMZN) $230.98 3.83%
Eli Lilly and Company (LLY) $684.43 3.62%
Kohls Corp. (KSS) $14.46 3.29%
S&P 500 - Fallers
Tapestry Inc. (TPR) $95.81 -15.71%
Advance Auto Parts (AAP) $56.85 -8.02%
Deere & Co. (DE) $478.84 -6.76%
Estee Lauder Co. Inc. (EL) $89.61 -6.05%
Ralph Lauren Corp (RL) $290.65 -3.89%
Cisco Systems Inc. (CSCO) $69.30 -3.50%
Keysight Technologies Inc. (KEYS) $164.56 -3.33%
Bath & Body Works, Inc. (BBWI) $28.75 -3.01%
Fortinet Inc. (FTNT) $77.25 -2.98%
Under Armour, Inc. (UA) $4.76 -2.86%
Nasdaq 100 - Risers
Sirius XM Holdings Inc (SIRI) $23.49 12.12%
Intel Corp. (INTC) $23.86 10.82%
DENTSPLY Sirona Inc. (XRAY) $13.87 6.28%
Skyworks Solutions Inc. (SWKS) $75.36 5.58%
Incyte Corp. (INCY) $86.16 4.85%
Biogen Inc (BIIB) $134.94 4.14%
Amazon.Com Inc. (AMZN) $230.98 3.83%
Qvc Group Inc Series A (QVCGA) $4.43 3.75%
Adobe Systems Inc. (ADBE) $348.58 3.13%
Workday, Inc. (WDAY) $221.95 3.11%
Nasdaq 100 - Fallers
NetEase Inc. Ads (NTES) $129.67 -6.57%
Cisco Systems Inc. (CSCO) $69.30 -3.50%
JD.com, Inc. (JD) $31.58 -3.43%
Trip.com Group Limited (TCOM) $60.31 -2.66%
Tesla Inc (TSLA) $335.58 -2.13%
Baidu Inc. (BIDU) $88.73 -1.93%
Mercadolibre Inc. (MELI) $2,319.80 -1.80%
Cadence Design Systems Inc. (CDNS) $348.92 -1.80%
Broadcom Inc. (AVGO) $311.23 -1.56%
Synopsys Inc. (SNPS) $616.36 -1.50%
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