US open: Stocks lower as Fed's preferred inflation gauge ticks up in July

(Sharecast News) - Major indices were in the red early on Friday as market participants digested news that inflation had ticked higher in July.

As of 1440 BST, the Dow Jones Industrial Average was down 0.17% at 45,558.41, while the S&P 500 shed 0.25% to 6,485.57 and the Nasdaq Composite came out of the gate 0.46% weaker at 21,604.36.

The Dow opened 78.49 points lower on Friday, extending losses recorded in the previous session as investors weighed Nvidia's latest quarterly update and its implications for the broader artificial intelligence trade.

Friday's primary focus was undoubtedly July's consumer price expenditures report, the Fed's preferred inflation gauge, which revealed inflation had edged higher last month, indicating that Donald Trump's so-called "reciprocal" tariffs had begun to work their way through the US economy.

According to the Commerce Department, last month's personal consumption expenditures price index showed that core inflation, which strips out volatile food and energy costs, ran at a 2.9% seasonally adjusted annual rate - up 0.1 percentage point from the June level and the highest annual rate since February. On a monthly basis, the core PCE index increased 0.3%, in line with expectations, while the all-items index saw an annual increase of 2.6% and a monthly gain of 0.2%.

Elsewhere on the macro front, Americans' incomes and spending grew briskly in July, while price pressures picked up a tad. According to the Department of Commerce, personal incomes and spending rose at a month-on-month pace of 0.4% and 0.5%, respectively. Both readings were in line with economists' forecasts.

Still to come, August's Chicago PMI was slated for release at 1445 BST, while the University of Michigan's August consumer sentiment index will follow at 1500 BST.

No major corporate earnings were slated for release on Friday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Apple Inc. (AAPL) $232.56 0.94%

Cisco Systems Inc. (CSCO) $69.43 0.80%

Microsoft Corp. (MSFT) $509.64 0.13%

Dow Jones - Fallers

Intel Corp. (INTC) $24.93 -0.24%

S&P 500 - Risers

Seagate Technology Plc (STX) $172.38 2.72%

NetApp Inc. (NTAP) $117.22 2.22%

Diamondback Energy Inc. (FANG) $149.17 1.64%

Wynn Resorts Ltd. (WYNN) $126.74 1.47%

Micron Technology Inc. (MU) $122.00 1.38%

Apache Corp. (APA) $22.98 1.28%

Alphabet Inc. Class C (GOOG) $212.37 1.24%

Alphabet Inc. Class A (GOOGL) $211.64 1.21%

Idexx Laboratories Inc. (IDXX) $647.03 1.18%

Ipg Photonics Corp. (IPGP) $84.98 1.17%

S&P 500 - Fallers

Microchip Technology Inc. (MCHP) $65.25 -2.93%

Cintas Corp. (CTAS) $208.32 -2.05%

Sba Communications Corp. (SBAC) $206.04 -1.86%

Biogen Inc (BIIB) $132.65 -1.76%

Gen Digital Inc. (GEN) $30.21 -1.72%

Charter Communications Inc. (CHTR) $263.63 -1.70%

Electronic Arts Inc. (EA) $170.99 -1.59%

Skyworks Solutions Inc. (SWKS) $75.10 -1.47%

T. Rowe Price Group Inc. (TROW) $108.28 -1.21%

Ross Stores Inc. (ROST) $149.05 -1.16%

Nasdaq 100 - Risers

Trip.com Group Limited (TCOM) $75.03 6.17%

Seagate Technology Plc (STX) $172.38 2.72%

Baidu Inc. (BIDU) $90.97 2.22%

Wynn Resorts Ltd. (WYNN) $126.74 1.47%

Micron Technology Inc. (MU) $122.00 1.38%

Vodafone Group Plc ADS (VOD) $11.92 1.27%

Alphabet Inc. Class C (GOOG) $212.37 1.24%

Alphabet Inc. Class A (GOOGL) $211.64 1.21%

Idexx Laboratories Inc. (IDXX) $647.03 1.18%

Cadence Design Systems Inc. (CDNS) $354.29 1.11%

Nasdaq 100 - Fallers

Microchip Technology Inc. (MCHP) $65.25 -2.93%

Cintas Corp. (CTAS) $208.32 -2.05%

Biogen Inc (BIIB) $132.65 -1.76%

Gen Digital Inc. (GEN) $30.21 -1.72%

Charter Communications Inc. (CHTR) $263.63 -1.70%

Electronic Arts Inc. (EA) $170.99 -1.59%

Sirius XM Holdings Inc (SIRI) $23.37 -1.48%

Skyworks Solutions Inc. (SWKS) $75.10 -1.47%

Tesla Inc (TSLA) $345.98 -1.37%

Workday, Inc. (WDAY) $228.50 -1.17%