US STOCKS-Wall St trades mixed on Fed tightening fears, Nvidia weighs

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * U.S. Senate approves bill on climate change, drug costs
    * Nvidia slides as slump in gaming demand hits Q2 revenue
    * Tyson Foods down on quarterly profit miss
    * Palantir drops on forecast cut
    * Indexes mixed: Dow up 0.14%; S&P, Nasdaq slip 

 (Adds byline, comment, fresh prices)
    By Herbert Lash and Bansari Mayur Kamdar
    Aug 8 (Reuters) - U.S. stock indexes were mixed 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 was another reminder of a
slowing U.S. economy.
    Stocks edged off the day's 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 for July to be
released on Wednesday to gauge whether the Fed might ease a bit
in its inflation fight and provide a path 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.
    The Dow Jones Industrial Average  .DJI  rose 45.37 points,
or 0.14%, to 32,848.84, the S&P 500  .SPX  lost 5.55 points, or
0.13%, to 4,139.64 and the Nasdaq Composite  .IXIC  dropped
24.65 points, or 0.19%, to 12,632.90.
    The S&P 500 has bounced back 14% from mid-June lows, but
signs of persistent inflation could further bolster 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 will 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. "We're fairly
valued right now based on the cross currents in the market."
    U.S. rate futures have priced in a 65.5% 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% after
chipmaker Nvidia Corp  NVDA.O  slid 8.0% as 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  declined
2.3%.  urn:newsml:reuters.com:*:nL4N2ZK2S1
    The tech-heavy Nasdaq  .IXIC  edged lower in choppy trading
after rising as much as 1.6% in early trading.
    Offsetting losses on the Nasdaq, megacap Tesla  TSLA.O  rose
2.0% 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  rose 5.75%, Ford Motor Co
 F.N  gained 4.38%, General Motors Co  GM.N  added 5.21% and
Lordstown Motors Corp  RIDE.O  advanced 5.56%.
    Signify Health Inc  SGFY.K  jumped 12.5% on a media report
that CVS Health Corp  CVS.N  was looking to buy the health
technology company.

    Palantir Technologies Inc  PLTR.N  dropped 12.5% 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 7.9% after missing quarterly
profit expectations.  urn:newsml:reuters.com:*:nL1N2ZK0QN
    Advancing issues outnumbered declining ones on the NYSE by a
2.57-to-1 ratio; on Nasdaq, a 1.56-to-1 ratio favored advancers.
    The S&P 500 posted eight new 52-week highs and 29 new lows;
the Nasdaq Composite recorded 92 new highs and 22 new lows.  

 (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))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.