US stocks end mixed after inflation data, bank results. Nasdaq boosted to record high
U.S. stocks closed mixed after June inflation remained tame, but economists still forecast an inflation spike ahead due to tariffs. Only the tech-laden Nasdaq rose, helped by gains in chip darling Nvidia.
Annual inflation rose 2.7% in June, in line with the average economist forecast and up from May's 2.4% rise. The so-called core rate excluding the volatile food and energy sectors, rose 2.9%, just below forecasts for 3% and weighed down again by lower used and new car prices.
However, categories that are more exposed to tariffs, including toys, furniture, appliances and apparel, showed strength, suggesting companies are starting to pass higher import costs on to consumers.
"It’s only a matter of time before more price hikes take effect, especially for cars and trucks," said Heather Long, chief economist at Navy Federal Credit Union. "Rising prices will make it harder for the Federal Reserve to cut interest rates and tougher for families living paycheck to paycheck."
The Federal Reserve's next policy meeting is at the end of the month, but almost no one expects the Fed to lower rates with inflation still looking muted. Instead, most economists expect the Fed to continue to wait and see what kind of impact tariffs might have on inflation and the economy.
President Donald Trump detailed a deal with Indonesia Tuesday afternoon. The U.S. would slap a 19% tax on Indonesian goods entering the U.S., and U.S. goods would face no tax entering the Asian nation. The 19% tariff is lower than the 32% Trump had threatened in a letter on July 7.
The blue-chip Dow lost 0.98%, or 436.36 points, to 44,023.29; the broad S&P 500 fell 0.4%, or 24.80 points, to 6,243.76 after eking out a record high earlier in the session, and the Nasdaq gained 0.18%, or 37.47 points, to 20,677.80 and reached a fresh record high as Nvidia shares gained on hopes it could resume selling certain chips to China.
The benchmark 10-year yield rose to 4.485%.
Earnings season also kicked off with mixed results. JPMorgan Chase, Wells Fargo and Citigroup were among the big banks that reported before the opening bell. The bar for earnings has dropped since the beginning of the year, before Trump's tariff plan. It is expected to be the weakest earnings season since mid-2023.
Corporate news
- The Trade Desk will join the S&P 500 before trading opens on Friday, July 18, according to S&P Dow Jones Indices. Shares rose 6.59%.
- Nvidia plans to sell its H20 GPU again. "The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon," it said in a blog post. Shares added 4.04%.
- Wells Fargo's quarterly results topped analysts' forecasts but the bank lowered its net interest income guidance. Shares slumped 5.43%.
- Citigroup's second-quarter results beat expectations. Shares added 3.68%.
- JPMorgan Chase topped quarterly estimates, with chief executive Jamie Dimon noting the economy has been resilient and the recent tax bill that passed would be good for the economy. Shares fell fractionally.
- BlackRock became the world’s first $12 trillion money manager, with assets up 18% from a year earlier. Quarterly earnings topped forecasts but revenue fell short. Shares dropped 5.88%.
- Albertsons' quarterly results beat forecasts, but gross margin slipped. Shares fell 5.02%.
- Ericsson missed quarterly sales forecasts and warned of increased uncertainty, partly due to possible tariff changes. Shares declined 7.91%.
- Newmont said its chief financial officer, Karyn Ovelmen, had left the company. Shares of the mining company slid 5.71%.
- MP Materials inked a $500 million deal to supply Apple with magnets that are manufactured at a plant in Texas. The rare earths company's shares rallied 20.02%.
Cryptocurrency
MicroStrategy said in a regulatory filing it acquired 4,225 Bitcoin between July 7 and July 13 at an average price of $111,827 per coin, or $472.5 million total.
Separately, a trio of cyrpto bills failed to clear a key procedural hurdle in the House, seen as a blow to the industry.
Bitcoin has climbed to successive record highs over the past week, but was last down 2.77% at $116,517.50.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.