US close: Stocks mixed as traders weigh rate cut odds, inflation signals

(Sharecast News) - Major indices delivered a mixed performance on Wednesday after a bout of profit-taking in the previous session.

At the close, the Dow Jones Industrial Average was down 0.05% at 45,271.23, while the S&P 500 advanced 0.51% to 6,448.26 and the Nasdaq Composite saw out the session 1.02% firmer at 21,497.73.

The Dow closed 24.58 points lower on Wednesday, extending losses recorded in the previous session as traders seemingly spent the Labor Day break reassessing the likelihood of a Federal Reserve rate cut later this month.

Google parent company Alphabet traded higher on the back of news that it will not have to sell its Chrome web browser, but will be forced to share information with competitors, according to a ruling from a US federal judge. The Department of Justice had initially demanded that Google sell Chrome - however, Tuesday's ruling means Alphabet will be able to keep the browser, but will be blocked from having exclusive contracts and will have to share search data with rivals.

The White House's ongoing tariff war was also getting a significant amount of attention on Wednesday after the appeals court ruled that Trump's so-called "reciprocal" tariffs were illegal, throwing fresh uncertainty into the mix. However, Scott Bessant has already stated that the administration was drawing up plans to implement the tariffs in a new setting should the court ultimately force their removal.

On the macro front, US mortgage applications fell by 1.2% in the week ended 29 August, according to the Mortgage Bankers Association, extending the prior week's 0.5% drop and marking a third consecutive weekly decline in mortgage demand. The drop took place despite a five-basis-point reduction in benchmark mortgage rates, which eased to their lowest level in almost five months. Applications for a mortgage to buy a new home fell by 1.2%, in line with weakening consumer sentiment, while applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, ticked up 0.9%.

Elsewhere, US job openings fell to a level rarely seen since the Covid-19 pandemic in July, according to the Bureau of Labor Statistics. Job openings fell by 176,000 to 7.18m in July, well below market expectations of 7.4m, with both hires and total separations unchanged at 5.3m, while the rate of hires was also flat at 3.3%. Meanwhile, the number of job openings for June was revised down by 80,000 to 7.4m, the number of hires was revised up by 63,000 to 5.3m, and the number of total separations was revised up by 281,000 to 5.3m.

Still on data, new orders for US-manufactured goods fell by 1.3% month-on-month to $603.6bn in July, according to the Census Bureau, extending the prior month's five-year high 4.8% plunge. The drop was led by a second consecutive sharp drop for orders of transportation equipment amid a drop for non-defence aircraft and parts, as foreign airlines and companies slowed orders of aircraft following April's surge to front-load purchases ahead of tariffs by the White House.

Finally, US economic activity expanded modestly in August, but inflationary pressures showed signs of intensifying, according to the Federal Reserve's latest Beige Book. Several districts reported rising input costs, particularly in manufacturing, where firms cited higher prices for materials and growing concern over tariff-related expenses. While wage growth remained subdued, some businesses delayed scheduled increases, and pricing power was described as mixed. Consumer spending was broadly flat, with retail and tourism contacts noting increased caution. Commercial real estate continued to weaken, and hiring was selective, favouring temporary roles over permanent positions.

In the corporate space, Dollar Tree posted stronger-than-expected second-quarter results on Wednesday, as the discount retailer raised its full-year outlook following the completion of its Family Dollar divestiture, while retailer Macy's reported Q2 earnings that came in ahead of expectations, as improved trading across its core nameplates prompted the department store operator to hike its FY guidance.

Salesforce reported a record Q2 performance after the bell, but issued some weak guidance for the current quarter, while Hewlett-Packard said Q3 revenues had surged 19% to $9.1bn.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Apple Inc. (AAPL) $238.47 3.81%

Walmart Inc. (WMT) $98.86 1.86%

Travelers Company Inc. (TRV) $275.24 1.37%

McDonald's Corp. (MCD) $316.57 0.91%

Merck & Co. Inc. (MRK) $84.48 0.29%

Procter & Gamble Co. (PG) $157.30 0.12%

Home Depot Inc. (HD) $407.24 0.09%

Microsoft Corp. (MSFT) $505.35 0.05%

Johnson & Johnson (JNJ) $177.36 0.00%

Walgreens Boots Alliance, Inc. (WBA) $11.98 0.00%

Dow Jones - Fallers

Nike Inc. (NKE) $74.61 -3.57%

Goldman Sachs Group Inc. (GS) $725.47 -2.54%

American Express Co. (AXP) $322.64 -2.53%

3M Co. (MMM) $151.53 -2.46%

Dow Chemical Co. (DOW) $24.10 -2.27%

Chevron Corp. (CVX) $157.64 -1.91%

Caterpillar Inc. (CAT) $412.65 -1.47%

Boeing Co. (BA) $230.97 -1.46%

Verizon Communications Inc. (VZ) $43.60 -1.44%

Walt Disney Co. (DIS) $116.82 -1.32%

S&P 500 - Risers

Macy's Inc. (M) $15.91 20.07%

Alphabet Inc. Class A (GOOGL) $230.66 9.14%

Alphabet Inc. Class C (GOOG) $231.10 9.01%

Ralph Lauren Corp (RL) $311.98 5.09%

Western Digital Corp. (WDC) $86.00 4.99%

Fluor Corp. (FLR) $43.02 4.95%

Bath & Body Works, Inc. (BBWI) $30.58 4.64%

FMC Technologies Inc. (FTI) $38.42 4.56%

Unum Group (UNM) $72.76 4.15%

Freeport-McMoRan Inc (FCX) $46.12 4.02%

S&P 500 - Fallers

Ansys Inc. (ANSS) $0.00 -100.00%

Constellation Brands Inc. Class A (STZ) $147.04 -9.35%

Transdigm Group Inc. (TDG) $1,278.04 -8.64%

Dollar Tree Inc (DLTR) $102.03 -8.37%

Revvity, Inc. (RVTY) $82.57 -8.12%

Celanese Corp. (CE) $44.76 -6.17%

Albemarle Corp. (ALB) $79.84 -5.98%

Intuitive Surgical Inc. (ISRG) $441.18 -5.95%

CenturyLink Inc. (LUMN) $4.68 -5.73%

Brown Forman Corp. Class B (BF.B) $28.31 -5.59%

Nasdaq 100 - Risers

Alphabet Inc. Class A (GOOGL) $230.66 9.14%

Alphabet Inc. Class C (GOOG) $231.10 9.01%

Western Digital Corp. (WDC) $86.00 4.99%

Apple Inc. (AAPL) $238.47 3.81%

Kraft Heinz Co. (KHC) $26.93 3.50%

Seagate Technology Plc (STX) $176.32 3.41%

Workday, Inc. (WDAY) $233.43 1.98%

Liberty Global plc Series C (LBTYK) $12.02 1.86%

Sirius XM Holdings Inc (SIRI) $23.53 1.82%

Liberty Global plc Series A (LBTYA) $11.82 1.72%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $8.15 -21.10%

Dollar Tree Inc (DLTR) $102.03 -8.37%

Intuitive Surgical Inc. (ISRG) $441.18 -5.95%

Align Technology Inc. (ALGN) $132.35 -3.50%

Starbucks Corp. (SBUX) $87.25 -2.82%

PACCAR Inc. (PCAR) $96.22 -2.67%

Regeneron Pharmaceuticals Inc. (REGN) $563.80 -2.44%

Electronic Arts Inc. (EA) $167.86 -2.09%

Texas Instruments Inc (TXN) $195.74 -2.04%

Henry Schein Inc. (HSIC) $67.16 -1.84%