Lucas Jackson/Reuters
- US stocks finished the week mostly lower as investors digest mixed inflation data.
- While the July CPI report came in lower than expected, the producer price index was higher than economist estimates.
- The conflicting data will serve as a major input into the Federal Reserve's next interest rate decision.
US stocks were mixed on Friday and finished the week mostly lower as investors digest inflationary data, which will serve as a major input into the Federal Reserve's next interest rate decision in September.
The July consumer price index came in lower than economist estimates and showed a continued cooldown in inflation, while July producer price index came in hotter than economist estimates, though it did indicate most prices are falling from year-ago levels.
Despite the conflicting data, investors still expect the Federal Reserve to pause their interest rate hikes at their September FOMC meeting, according to the CME FedWatch Tool. But that doesn't mean interest rate hikes are over, as the Fed is still awaiting the August CPI and jobs report to inform its decision.
"The increase in wholesale prices serves as a reminder that the data-dependent Fed isn't ready to declare victory on its campaign to quell inflation," LPL's chief global strategist Quincy Krosby said. "Today's report offers the hawkish wing of the Fed more ammunition to advocate for another rate hike before the Fed is convinced it's reached its terminal rate."
Here's where US indexes stood shortly at the 4:00 p.m. closing bell on Friday:
- S&P 500: 4,464.18, down 0.1%
- Dow Jones Industrial Average: 35,281.86, up 0.3% (+105.32 points)
- Nasdaq Composite: 13,644.85, down 0.68%
Here's what else is going on today:
- Market pundits are growing confident that the Fed is not only done hiking interest rates, but that they could cut rates early next year.
- Apple has bought back more than $500 billion of its stock via buybacks since 2012, more than the worth of Visa, JPMorgan, and Exxon.
- Saudi Arabia is about to send more oil to China, even though it's slashed crude supply levels.
The US housing market just hit a record value of $47 trillion as the inventory shortage fuels a price boom.
- Goldman Sachs' ex-CEO called up his successor to complain after taking a $50 million hit on the bank's stock.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 0.40% to $83.15 a barrel. Brent, the international benchmark, jumped 0.32% to $86.68 a barrel.
- Gold fell 0.20% to $1,945.00 per ounce.
- The yield on the 10-year Treasury bond jumped six basis points to 4.17%.
- Bitcoin fell 0.23% to $29,360.