US close: Stocks finish higher as cooling inflation offsets Iran tensions

(Sharecast News) - Major indices closed higher on Wednesday despite rising oil prices amid heightened tensions between the US and Iran.

At the close, the Dow Jones Industrial Average was up 0.29% at 52,658.64, while the S&P 500 advanced 0.38% to 7,572.40, and the Nasdaq Composite saw out the session 0.62% firmer at 26,269.23.

The Dow closed 150.37 points higher on Wednesday, building on modest gains recorded in the previous session as traders balanced rising US-Iran tensions against June inflation data and a fresh batch of bank earnings.

Crude prices firmed after US Central Command said American forces had carried out additional strikes on Iranian targets, stating the action was intended "to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz". West Texas Intermediate futures were up 0.33% at $79.60 a barrel, while international benchmark Brent crude futures gained 0.96% to $85.54 a barrel.

Outside of Middle East developments, Wednesday's primary focus was news that the US producer price index for final demand fell 0.3% in June, according to the Bureau of Labor Statistics, reversing gains of 0.6% in May and 1.1% in April. June's decline was driven by a 1.4% drop in final demand goods - the largest fall since July 2022 - while final demand services edged 0.2% higher. On an unadjusted basis, the index was up 5.5% over the year.

Core PPI, which strips out volatile food, energy and trade services, rose 0.1% on the month and was 5.1% higher yearonyear. Last month's PPI reading comes just a day after the US consumer price index fell 0.4% in June from the prior month, taking the annual inflation rate down to 3.5%. Economists polled had expected a 0.2% monthly decline and 3.8% yearonyear inflation.

Following the PPI reading, New York Fed president John Williams said that "there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters", offering a cautiously optimistic view on the outlook for monetary policy.

Elsewhere on the macro front, US mortgage applications fell 2.7% in the week to 10 July, according to the Mortgage Bankers Association, extending the prior week's decline. Last week's drop came as the benchmark 30year fixed mortgage rate rose seven basis points to 6.65%, matching its highest level in 11 months. The MBA said the increase reflected sharply higher longterm Treasury yields amid heightened concerns over energydriven inflation. Applications to refinance a mortgage, which are more sensitive to shortterm interest rate moves, fell 4%, while applications to purchase a home dropped a steeper 7% week-on-week.

On another note, the New York Fed's Empire State manufacturing index jumped ten points to 15.6 in July, pointing to a solid pickup in business activity across the state. Firms reported strong gains in new orders and shipments, with unfilled orders rising and delivery times lengthening further as supply availability continued to worsen. Employment increased at a steady pace and the average workweek edged higher. Input and selling prices remained elevated, though both eased slightly on the month.

In the corporate space, Morgan Stanley posted betterthanexpected secondquarter earnings on Wednesday, delivering earnings per share of $3.46 versus the $2.94 forecast, on revenue of $21.35bn compared with expectations of $19.64bn, while Bank of New York Mellon lifted its FY26 revenue outlook after reporting record Q2 revenues, boosted by higher interest income, stronger fee generation and rising equity markets that boosted client asset values.

BlackRock beat expectations, driven by record inflows and solid organic growth across its platform, with earnings per share of $13.91 topping the $12.57 consensus and revenue of $7.08bn ahead of forecasts of $6.72bn, while Johnson & Johnson also exceeded Wall Street estimates for Q2 sales and profits, helped by robust demand for immunology drug Tremfya and cancer treatment Darzalex, offsetting declines in older products.

After the close, United Airlines posted Q2 results that came in ahead of Wall Street expectations, though the carrier said higher fuel costs continued to weigh on profitability. The airline delivered adjusted earnings of $1.99 per share, topping forecasts of $1.88, while revenues came in at $17.67bn, slightly above the $17.61bn expected for the three months ended 30 June.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Apple Inc. (AAPL) $327.50 3.86%

Microsoft Corp. (MSFT) $395.63 3.43%

3M Co. (MMM) $160.53 2.52%

Merck & Co. Inc. (MRK) $123.61 2.33%

Procter & Gamble Co. (PG) $148.05 1.34%

Walt Disney Co. (DIS) $97.15 1.34%

JP Morgan Chase & Co. (JPM) $346.91 1.17%

Home Depot Inc. (HD) $341.44 1.10%

Goldman Sachs Group Inc. (GS) $1,152.07 1.06%

American Express Co. (AXP) $358.44 0.95%

Dow Jones - Fallers

Cisco Systems Inc. (CSCO) $111.77 -6.56%

Intel Corp. (INTC) $102.99 -4.12%

International Business Machines Corporation (CDI) (IBM) $211.20 -2.70%

Johnson & Johnson (JNJ) $247.02 -2.69%

Travelers Company Inc. (TRV) $329.19 -2.27%

Caterpillar Inc. (CAT) $914.30 -2.04%

Dow Chemical Co. (DOW) $29.70 -2.01%

Unitedhealth Group Inc. (UNH) $418.52 -1.57%

McDonald's Corp. (MCD) $264.95 -1.48%

Coca-Cola Co. (KO) $82.45 -0.76%

S&P 500 - Risers

Paypal Holdings Inc (PYPL) $55.52 18.03%

DENTSPLY Sirona Inc. (XRAY) $13.40 7.03%

Blackrock Inc. (BLK) $1,093.40 6.63%

CBRE Group Inc (CBRE) $141.41 6.20%

Jefferies Financial Group Inc. (JEF) $57.13 5.87%

Carmax Inc. (KMX) $58.94 5.76%

Cintas Corp. (CTAS) $192.37 5.58%

Alphabet Inc. Class C (GOOG) $370.21 5.56%

Invesco Ltd. (IVZ) $30.30 5.46%

Coty Inc. Class A (COTY) $2.37 5.33%

S&P 500 - Fallers

Pentair plc (PNR) $64.33 -15.00%

Western Digital Corp. (WDC) $513.84 -11.90%

Progressive Corp. (PGR) $205.22 -9.43%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Elevance Health Inc. (ELV) $390.33 -8.54%

Seagate Technology Plc (STX) $828.30 -7.87%

Micron Technology Inc. (MU) $904.28 -7.78%

Corning Inc. (GLW) $174.41 -7.07%

Cisco Systems Inc. (CSCO) $111.77 -6.56%

Advance Auto Parts (AAP) $52.09 -5.99%

Nasdaq 100 - Risers

Paypal Holdings Inc (PYPL) $55.52 18.03%

DENTSPLY Sirona Inc. (XRAY) $13.40 7.03%

Cintas Corp. (CTAS) $192.37 5.58%

Alphabet Inc. Class C (GOOG) $370.21 5.56%

Alphabet Inc. Class A (GOOGL) $370.92 5.10%

Booking Holdings Inc. (BKNG) $182.80 4.77%

Workday, Inc. (WDAY) $141.82 4.58%

Apple Inc. (AAPL) $327.50 3.86%

Nvidia Corp. (NVDA) $212.50 3.86%

Meta Platforms Inc. (META) $681.31 3.58%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Western Digital Corp. (WDC) $513.84 -11.90%

Seagate Technology Plc (STX) $828.30 -7.87%

Micron Technology Inc. (MU) $904.28 -7.78%

Cisco Systems Inc. (CSCO) $111.77 -6.56%

Fastenal Co. (FAST) $45.36 -5.41%

O'Reilly Automotive Inc. (ORLY) $82.73 -4.86%

QUALCOMM Inc. (QCOM) $177.98 -4.61%

Lam Research Corp. (LRCX) $335.43 -4.16%

Intel Corp. (INTC) $102.99 -4.12%