The Dow, S&P 500 and Nasdaq traded mixed Wednesday after inflation and growth data matched estimates. Nvidia slipped ahead of its earnings report while Zoom Communications sank on a disappointing revenue outlook.
Major U.S. stock indexes were modestly mixed Wednesday morning as Wall Street digested inflation data that came in at elevated levels. Nvidia fell ahead of its earnings report, and Zoom Communications tumbled after its results.
Indexes hold near flat
The Dow Jones Industrial Average shed 0.2% Wednesday morning, while the S&P 500 hovered near its break-even line. The tech-heavy Nasdaq composite gave back around 0.2%, and the small-cap Russell 2000 pulled back 0.2%.
The Commerce Department's preliminary second-quarter GDP reading came in at 1.5%, unchanged from the previous estimate and matching economist expectations. The Federal Reserve's favored inflation gauge, the core PCE price index rose 0.2% in July with a 3.3% annual increase, both in line with forecasts.
Nvidia slips before earnings
Nvidia stock inched lower premarket Wednesday, looking to build on Tuesday's 2.2% rebound that snapped a seven-day losing streak. Analysts predict adjusted earnings of $2.09 a share, up 99% year over year, with sales rising 97% to $92.3 billion for the fiscal second quarter that ended July 26.
Zoom sinks on outlook
Zoom Communications sank around 7% in heavy volume after its fiscal third-quarter revenue outlook disappointed, undercutting its 21-day moving average and dipping below its 50-day line. The company beat fiscal second-quarter earnings and sales, but growth has been lackluster: earnings rose 6% in 2024 and 7% in 2025, with forecasts calling for just 3% growth in fiscal 2026, while sales growth is expected at 5% for the year.
Elsewhere, the 10-year Treasury yield rose 1 basis point to 4.65%, and West Texas Intermediate crude edged lower to $81.85 a barrel.
Other index movers
Apparel retailer Abercrombie & Fitch gapped up around 33% in huge volume after reporting fiscal second-quarter profit that far exceeded analyst estimates. Among Nasdaq-100 stocks, Western Digital rallied more than 3%, while Kraft Heinz declined roughly 2% in morning action. On the Dow, Goldman Sachs and JPMorgan Chase climbed a fraction each, while Chevron and Microsoft declined nearly 1% each in premarket trading.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
