EQUITY NEWS: S&P, Nasdaq outpace inflation data, Zales and Signet buy Blue Nile

EQUITY NEWS: S&P, Nasdaq outpace inflation data, Zales and Signet buy Blue Nile

US stocks were trading cautiously early Tuesday morning as investors awaited the release of July consumer price index reports.

Stocks faltered on Monday as investors scrutinized a series of earnings reports to better understand the impact of higher inflation on businesses and consumers.

The S&P 500 fell 5.13 points, or 0.1%, to 4140.06. The Nasdaq Composite fell 13.10 points, or 0.1%, to 12644.46 after spending much of the afternoon teetering between gains and losses. The tech-heavy index flirted earlier with a potential exit from its bear market. The Dow Jones Industrial Average added 29.07 points, or 0.1%, to 32,832.54 points.

Shares of tech giant Nvidia fell $11.96, or 6.3%, to $177.93 after reporting preliminary quarterly earnings below analysts’ forecasts. The company said it expects difficult market conditions to persist in the third quarter.

Shares of Palantir Technologies fell $1.63, or 14%, to $9.82 after issuing guidance that missed Wall Street estimates.

Stocks have wobbled in recent days, rocked by shifting views on central bank policy. Friday’s better-than-expected jobs report divided investors and analysts. Some raised concerns that the Federal Reserve could continue to raise interest rates aggressively, while others wondered if the US economy could really be in a recession.

“If we do technically go into a recession, I think it’s more likely to be short-lived and less severe because the consumer and businesses are well-adjusted to go into this recession,” said Chief Investment Officer Wiley Angell. at Ziegler Capital Management.

Kiran Ganesh, multi-asset strategist at UBS, said the labor market “doesn’t look like a broad recession.” “Investors seem to be in the mood to listen to the good news,” he added.

Meanwhile, Asian stocks mostly fell on Tuesday amid a global decline in tech stocks, including Japan’s SoftBank, which reported heavy losses caused by the market slowdown.

Shares fell in Tokyo and Hong Kong, but rose in other regional markets. Japanese tech investor SoftBank Group Corp. fell more than 4% in Tokyo trading. On Monday, it announced a record quarterly loss of $23 billion.

A global dive into tech-related issues, such as Chinese e-commerce giant Alibaba, has driven its vast portfolio of investments. Analysts monitoring Asian markets said regional tensions also remained a risk, due to the flare-up between China and Taiwan after US spokeswoman Nancy Pelosi’s recent visit to Taiwan. China said it was extending threatening military exercises around Taiwan, disrupting sea and air traffic and raising concerns over trade.

Japan’s benchmark Nikkei 225 fell 0.9% in afternoon trade to 27,999.96. Australia’s S&P/ASX 200 edged up 0.1% to 7,029.80. The South Korean Kospi edged up 0.5% to 2,504.60. Hong Kong’s Hang Seng erased earlier gains and fell nearly 0.1% to 20,029.60, while the Shanghai Composite edged up 0.3% to 3,245.92.


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