US close: Stocks slip as traders digest PCE inflation uptick, Nvidia earnings

(Sharecast News) - Major indices closed lower on Wednesday as traders digested key US inflation data and Nvidia's latest quarterly numbers.

At the close, the Dow Jones Industrial Average was down 0.21% at 53,463.88, while the S&P 500 shed 0.02% to 7,675.70 and the Nasdaq Composite saw out the session 0.08% softer at 26,130.20.

The Dow closed 113.52 points lower on Wednesday, taking a bite out of gains recorded in the previous session.

Wednesday's primary focus was news that US inflation ticked slightly higher in July, according to the Federal Reserve's preferred gauge, with both headline and core readings showing modest monthly increases. The Bureau of Economic Analysis' personal consumption expenditures price index rose 0.2% on the month and 3.7% yearonyear in July, both a touch above consensus, while core PCE, which strips out volatile food and energy costs, also increased 0.2% on the month and 3.3% annually, matching forecasts.

July's report also showed personal income up 0.4% and spending rising 0.2%, both stronger than expected. Goods prices fell 0.1%, driven by a 2.7% drop in gasoline and other energy goods and a 0.9% decline in household furnishings and durable equipment. Services prices, on the other hand, climbed 0.3%, led by a 1.2% rise in financial services and insurance and a 0.3% increase in housing.

Last month's PCE reading comes as the bond market returned to focus after longdated US yields hit multiyear highs last week, with the 30year touching levels last seen nearly two decades ago. Investors were also looking ahead to Federal Reserve chairman Kevin Warsh's upcoming appearance at Jackson Hole on Friday, though economists expect him to keep guidance limited ahead of September's policy decision.

Elsewhere on the macro front, US mortgage applications slipped 1% on the week ended 21 August, according to the Mortgage Bankers Association, extending the prior week's 0.4% decline. The shift reflected only a modest uptick in the average 30year mortgage benchmark, which remains close to its highest level in a year. Yields on the 30year Treasury have surged to multidecade highs amid mounting corporate debt, widening federal deficits and worries that the Federal Reserve has become too complacent on inflation. Applications to refinance a mortgage, which are more sensitive to week-to-week interest rate changes, fell 2% week-on-week, while applications to purchase a home dipped 0.3%.

On another note, US durable goods orders rose more than expected in July, according to the Census Bureau, with new orders up 1.1% monthonmonth at $339.3bn, following a revised 0.5% gain in June and beating forecasts for a 0.5% rise. The increase was driven by a 2.3% jump in transportation equipment, led by strong nondefence aircraft orders, up 12.7%, and a 4.9% rise in defence aircraft and parts. Weakness persisted in techrelated categories, with computers and electronic products down 1.1%, and electrical equipment, appliances and components slipping 0.4%. Excluding transportation, orders rose 0.4%, missing expectations for a stronger print. Nondefence capital goods excluding aircraft edged up 0.2%, following a revised 1.7% increase in June and coming in below the 0.9% rise economists had pencilled in.

In the corporate space, Nvidia delivered another set of strongerthanexpected quarterly numbers and issued revenue guidance that topped Wall Street forecasts. The chipmaker posted adjusted earnings of $2.22 per share, ahead of the $2.10 pencilled in by analysts, while revenues came in at $96.22bn, beating expectations for $92.17bn.

US department store chain Kohl's posted a drop in second-quarter sales as it conceded there was "critical work" to be done going forward, but lifted its full-year profit guidance as it included the benefit of tariff refunds, while apparel retailer Abercrombie & Fitch posted Q2 results that came in ahead of Wall Street expectations and raised its full-year outlook.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Microsoft Corp. (MSFT) $496.37 1.73%

Caterpillar Inc. (CAT) $821.93 1.31%

Unitedhealth Group Inc. (UNH) $401.01 1.11%

Apple Inc. (AAPL) $313.45 0.90%

Dow Chemical Co. (DOW) $30.33 0.56%

Boeing Co. (BA) $212.09 0.48%

Cisco Systems Inc. (CSCO) $112.36 0.42%

Travelers Company Inc. (TRV) $371.15 0.40%

3M Co. (MMM) $180.00 0.35%

Chevron Corp. (CVX) $200.21 0.16%

Dow Jones - Fallers

Nike Inc. (NKE) $38.59 -2.25%

Merck & Co. Inc. (MRK) $153.10 -2.14%

International Business Machines Corporation (CDI) (IBM) $229.87 -1.84%

Goldman Sachs Group Inc. (GS) $1,040.46 -1.74%

Coca-Cola Co. (KO) $90.08 -1.70%

Intel Corp. (INTC) $88.24 -1.56%

Walt Disney Co. (DIS) $109.63 -1.46%

Johnson & Johnson (JNJ) $270.00 -1.15%

Amgen Inc. (AMGN) $440.34 -1.03%

Home Depot Inc. (HD) $334.85 -0.90%

S&P 500 - Risers

Bath & Body Works, Inc. (BBWI) $18.90 7.51%

CH Robinson Worldwide Inc (CHRW) $151.73 6.23%

Arista Networks Inc. (ANET) $202.25 5.92%

Western Digital Corp. (WDC) $468.88 5.68%

PVH Corp. (PVH) $78.51 5.35%

Gap Inc. (GAP) $21.15 4.96%

Charter Communications Inc. (CHTR) $153.89 4.88%

Seagate Technology Plc (STX) $846.37 4.82%

Williams Companies Inc. (WMB) $74.41 4.68%

J. M. Smucker Co. (SJM) $130.90 4.34%

S&P 500 - Fallers

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

Intuit Inc. (INTU) $345.88 -5.56%

Eli Lilly and Company (LLY) $1,189.41 -3.59%

TripAdvisor Inc. (TRIP) $9.87 -3.52%

Equity Residential (EQR) $63.66 -3.50%

Boston Scientific Corp. (BSX) $48.17 -3.39%

Nektar Therapeutics (NKTR) $73.77 -3.23%

Dxc Technology Company (DXC) $10.55 -3.12%

Verisk Analytics Inc. (VRSK) $187.87 -3.00%

Accenture Plc (ACN) $181.38 -2.97%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $468.88 5.68%

Charter Communications Inc. (CHTR) $153.89 4.88%

Seagate Technology Plc (STX) $846.37 4.82%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $543.19 2.64%

DENTSPLY Sirona Inc. (XRAY) $10.93 2.44%

Cadence Design Systems Inc. (CDNS) $334.68 2.41%

Gen Digital Inc. (GEN) $29.64 2.31%

Starbucks Corp. (SBUX) $108.49 2.23%

Synopsys Inc. (SNPS) $410.00 2.17%

Microsoft Corp. (MSFT) $496.37 1.73%

Nasdaq 100 - Fallers

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

Intuit Inc. (INTU) $345.88 -5.56%

Workday, Inc. (WDAY) $190.75 -3.65%

NetEase Inc. Ads (NTES) $123.43 -3.01%

Verisk Analytics Inc. (VRSK) $187.87 -3.00%

Monster Beverage Corp (MNST) $47.81 -2.46%

Booking Holdings Inc. (BKNG) $208.89 -2.30%

Wynn Resorts Ltd. (WYNN) $97.17 -2.28%

eBay Inc. (EBAY) $104.20 -2.22%

Kraft Heinz Co. (KHC) $24.79 -2.17%