Stocks fall as inflation slow down sparks tapering fears
Apple unveiled iPhone 13
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U.S. stock indexes were pressured Tuesday as a report showed consumer price gains slowed in August, spotlighting the possibility the Federal Reserve could begin tapering its asset-purchase program later this year.
The Dow Jones Industrial Average fell 291 points, or 0.83%, while the S&P 500 index and the Nasdaq Composite index declined 0.57% and 0.45%, respectively. The modest losses come after the Dow opened with a 121-point gain a day after snapping its five-day losing streak.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37893.05 | +157.94 | +0.42% |
| SP500 | S&P 500 | 5064.38 | +2.56 | +0.05% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15907.030271 | +22.01 | +0.14% |
The August consumer price index showed prices last month rose 5.3% annually, slowing from the 5.4% pace in July that matched the fastest growth in 13 years. Prices edged up 0.3% month over month.
The report sparked investor concerns that the Fed could announce plans to scale back its asset purchases in an upcoming meeting.
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After the report, the yield on the 10-year note fell five basis points to 1.28%.
In stocks, Apple Inc. unveiled its new iPhone 13 which has a state-of-the-art memory chip and updated camera, among other things. Updates to other products, like the iPad and Apple Watch, were also announced. Still, shares closed with losses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 172.69 | -3.86 | -2.19% |
Amazon Inc. raised its average starting pay to $18 per hour and said it would hire 125,000 warehouse and transportation workers in the U.S.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 183.00 | -3.13 | -1.68% |
Oracle Corp. reported quarterly sales that fell short of Wall Street estimates as cloud revenue missed the mark. Current quarter earnings guidance was ahead of expectations while revenue guidance was a bit light.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ORCL | ORACLE CORP. | 119.88 | -1.23 | -1.02% |
Casino stocks including Las Vegas Sands, MGM Resorts International and Wynn Resorts Ltd. were on track for their biggest daily percentage drops in over a year after Macau said it would tighten restrictions on the gaming industry.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MGM | MGM RESORTS INTERNATIONAL | 42.98 | +0.13 | +0.30% |
| WYNN | WYNN RESORTS LTD. | 99.44 | -1.74 | -1.72% |
| LVS | LAS VEGAS SANDS CORP. | 50.25 | -0.18 | -0.36% |
Oil stocks, which were the top performers Monday, slid as West Texas Intermediate crude ticked up 1 cent to a six-week high of $70.46 a barrel as Hurricane Nicholas made landfall in Texas.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 119.68 | -0.69 | -0.57% |
| HAL | HALLIBURTON CO. | 39.10 | -0.57 | -1.44% |
| KMI | KINDER MORGAN INC. | 17.97 | -0.16 | -0.88% |
Elsewhere in commodities, gold climbed $12.70 to $1,804.70 an ounce.
Overseas markets traded mixed.
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European bourses were choppy with France’s CAC 40 sliding 0.36%, Britain’s FTSE 100 losing 0.49% and Germany’s DAX 30 ticking higher by 0.14%.
In Asia, Japan’s Nikkei 225 jumped 0.73% while Hong Kong’s Hang Seng index and China’s Shanghai Composite declined 1.21% and 1.42%, respectively, after developer China Evergrande reiterated concerns it could default on its debt.