Earnings, Inflation Worries Weigh on Equities
The Dow Jones Industrial Average fell Tuesday as worries over U.S. inflation and a mixed bag of big bank earnings dragged the blue-chip index lower. The Nasdaq Composite, meanwhile, got a boost from gains in Nvidia.
The 30-stock index plummeted 269.65 points to move from Tuesday morning to afternoon at 44,190.
The S&P 500 index inched higher 0.74 points to 6,269.30.
The NASDAQ Composite jumped 142.28 points to 20,782.60, lifted by a more than 4% rise in Nvidia shares after the chip company said it hopes to “soon” resume deliveries of its H20 GPU sales to China. The S&P 500 dipped 0.1%, easing from a fresh record high it reached earlier in the session.
Wells Fargo beat earnings, but a reduction in net interest income guidance sent shares lower by more than 4%. Shares of JPMorgan Chase edged lower even though the bank posted better-than-expected second-quarter results driven by strong trading and investment banking revenue. Asset manager BlackRock slipped more than 6% on a quarterly revenue miss.
Citigroup bucked the negative trend in financials, rising about 1% after the bank topped second-quarter estimates.
The consumer price index in June increased 0.3% on the month, putting the annual inflation rate at 2.7%, matching a consensus poll from Dow Jones. So-called core CPI, which excludes food and energy prices, grew 0.2% month over month, slightly less than expected. Year over year, it expanded by 2.9%, matching estimates.
Prices for the 10-year treasury were lower, hiking yields to 4.48% from Monday’s 4.43%. Treasury prices and yields move in opposite directions.
Oil prices lost 57 cents to $66.41 U.S. a barrel.
Gold prices lost $21.00 to $3,338.10 U.S. an ounce.
