US STOCKS-Wall Street closes mixed on Fed tightening fears; Nvidia weighs

Reuters

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    * Auto stocks up on Senate approval of bill with EV funding
    * Nvidia slides as slump in gaming demand hits Q2 revenue
    * Indexes mostly flat 

 (Adds U.S. market close)
    By Herbert Lash and Bansari Mayur Kamdar
    Aug 8 (Reuters) - U.S. stock indexes closed little changed
on Monday after blockbuster jobs data last week reinforced
expectations the Federal Reserve will crack down on inflation,
while a revenue warning from chipmaker Nvidia reminded investors
of a slowing U.S. economy.
    Stocks retreated from earlier highs as last week's blowout
labor market report was initially seen as a sign the economy
could withstand aggressive interest rate hikes by the Fed to
tame inflation running at four-decade highs. 
    Investors now await consumer price data on Wednesday to
gauge whether the Fed might ease a bit in its inflation fight
and provide better footing for the economy to grow.  urn:newsml:reuters.com:*:nL1N2ZK0D1
    "The CPI data will help to confirm if the Fed's tightening
efforts have been successful in starting to tame inflation or if
continued Fed tightening is needed," said Robert Schein, chief
investment officer at Blanke Schein Wealth Management.
    According to preliminary data, the S&P 500  .SPX  lost 5.19
points, or 0.13%, to end at 4,140.00 points, while the Nasdaq
Composite  .IXIC  lost 12.12 points, or 0.10%, to 12,645.43. The
Dow Jones Industrial Average  .DJI  rose 30.76 points, or 0.09%,
to 32,834.23.    
    The S&P 500 has bounced back 14% from mid-June lows. But
signs of inflation running too hot could cement the Fed's case
for aggressive monetary policy tightening.  urn:newsml:reuters.com:*:nL1N2ZH2K7
    Anthony Saglimbene, chief market strategist at Ameriprise in
Troy, Michigan, said the market was due to pull back at some
point as traders test the recent rebound.
    "If we can hold those mid-June levels, it would be another
sign that maybe this is more than just a bear market rally and
the market is actually trying to recover and anticipate a better
environment ahead," Saglimbene said.
    "Maybe we can get a little bit higher by year end, but
that's if everything lines up perfectly," he said, adding that
the University of Michigan's preliminary consumer sentiment
survey for August on Friday also will be closely watched.
    "That's the tug of war between these data sets that tell the
story about, 'Hey, are we going to turn into a recession or
avoid one?'"
    U.S. rate futures have priced in a 67.5% chance of a
75-basis-point hike at the Fed's next meeting in September, up
from about 41% before the labor market data beat market
expectations.  FEDWATCH 
    The information technology sector  .SPLRCT  fell after
chipmaker Nvidia Corp  NVDA.O  slid as the company warned it
expects second-quarter revenue to decline 19% from the prior
quarter to about $6.7 billion due to weakness in gaming.
 urn:newsml:reuters.com:*:nL4N2ZK2S1
    The Philadelphia SE Semiconductor index  .SOX  declined,
while value stocks  .IVX  outpaced a drop in growth  .IGX .
    Offsetting losses on the Nasdaq, megacap Tesla  TSLA.O  rose
as the U.S. electric-car maker signed contracts worth about $5
billion to buy battery materials from nickel processing
companies in Indonesia, according to a CNBC report.  urn:newsml:reuters.com:*:nL4N2ZK0ZJ
    Shares of U.S. automakers jumped after the U.S. Senate on
Sunday passed a $430 billion bill to fight climate change that
created a $4,000 tax credit for used electric vehicles and
provides billions in funding for their production.  urn:newsml:reuters.com:*:nL1N2ZJ02X
    Rivian Automotive Inc  RIVN.O , Ford Motor Co  F.N , General
Motors Co  GM.N  and Lordstown Motors Corp  RIDE.O  all rose.
    Signify Health Inc  SGFY.K  jumped on a media report that
CVS Health Corp  CVS.N  was looking to buy the health technology
company.
    Palantir Technologies Inc  PLTR.N  dropped after the data
analytics software company lowered its annual revenue forecast
as the timing of some large government contracts remained
uncertain.  urn:newsml:reuters.com:*:nL4N2ZK1TK
    Tyson Foods Inc  TSN.N  fell after missing quarterly profit
expectations.  urn:newsml:reuters.com:*:nL1N2ZK0QN

 (Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in
Bengaluru; Editing by Shounak Dasgupta and Cynthia Osterman)
 ((BansariMayur.Kamdar@thomsonreuters.com; Twitter:
@BansariKamdar https://twitter.com/BansariKamdar))

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