US STOCKS-Wall Street closes little changed on Fed policy fears


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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
    * Dow closes up 0.09%, Nasdaq down 0.1%, S&P 500 0.12%

 (Adds closing market data)
    By Herbert Lash and Bansari Mayur Kamdar
    Aug 8 (Reuters) - Wall Street closed mostly flat 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.*: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.
    The Dow Jones Industrial Average  .DJI  rose 29.07 points,
or 0.09%, to 32,832.54, while the S&P 500  .SPX  lost 5.13
points, or 0.12%, to 4,140.06 and the Nasdaq Composite  .IXIC 
dropped 13.10 points, or 0.1%, to 12,644.46.
    Volume on U.S. exchanges was 11.01 billion shares. 
    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.*: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.
    "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 0.9% as
chipmaker Nvidia Corp  NVDA.O  slid 6.3% after the company said
it expects second-quarter revenue to decline 19% from the prior
quarter to about $6.7 billion, due to weakness in gaming. 
    The Philadelphia SE Semiconductor index  .SOX  slid 1.6%,
while value stocks  .IVX  rose 0.1% to outpace a 0.4% drop in
    Tesla  TSLA.O  rose 0.8% 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.*: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.*:nL1N2ZJ02X
    Rivian Automotive Inc  RIVN.O  rose 6.78%, Ford Motor Co
 F.N  gained 3.14%, General Motors Co  GM.N  added 4.16% and
Lordstown Motors Corp  RIDE.O  advanced 3.17%.
    Signify Health Inc  SGFY.K  shot up 11.0% on a media report
that CVS Health Corp  CVS.N  was looking to buy the health
technology company.
    Palantir Technologies Inc  PLTR.N  dropped 14.2% after the
data analytics software company lowered its annual revenue
forecast as the timing of some large government contracts
remained uncertain.*:nL4N2ZK1TK
    Tyson Foods Inc  TSN.N  fell 8.4% after missing quarterly
profit expectations.*:nL1N2ZK0QN
    Advancing issues outnumbered declining ones on the NYSE by a
2.28-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored advancers.
    The S&P 500 posted eight new 52-week highs and 29 new lows;
the Nasdaq Composite recorded 104 new highs and 27 new lows. 

 (Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in
Bengaluru; Editing by Shounak Dasgupta and Cynthia Osterman)
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