The three major US stock indices recorded declines at the opening of trading today, Thursday, August 14, shifting from the positive trading in futures before the opening, supported by corporate earnings and rising expectations of a US interest rate cut. However, producer price figures exceeded expectations, reducing bearish bets and negatively impacting the opening of the US market, with the Nasdaq and S&P 500 indexes losing their record highs set yesterday, Wednesday.
The entire S&P 500 index sector is trading in the red, with the technology sector losing 1.01%, the energy sector declining 0.58%, the consumer discretionary sector declining 0.26%, the industrial sector declining 0.71%, healthcare declining 0.35%, and the materials sector losing 1.38%. In terms of economic data, the US Bureau of Labor Statistics reported that the Producer Price Index (PPI), the complementary inflation measure, rose 0.9% in July, compared to no change in June and a 0.4% increase in May. Expectations were for a 0.9% increase. The PPI rose 3.3% year-on-year, its largest increase since February 2025. The core PPI, which excludes food, energy, and trade services prices, also rose 0.6%, its largest increase since March 2022, and rose 2.8% year-on-year.
Conversely, the US Department of Labor announced that initial claims for state unemployment benefits fell last week, ending August 9, to 224,000, below expectations.
With the deadline for reporting second-quarter earnings for US companies and institutions approaching, most of the results were positive, with more than 90% of the Standard & Poor’s 500 companies reporting their financial results. Deere & Co., the agricultural equipment manufacturer, reported lower second-quarter earnings, with net income of $1.29 billion, or $4.75 per share.
In contrast, Cisco Systems reported adjusted earnings per share of $0.99 for the second quarter, with revenue of $14.67 billion, beating Wall Street expectations. Its AI-powered platform boosted network sales, and the company’s stock fell 0.49% at the open.
Brinker International (EAT) shares rose more than 9% at the open after the company reported net income of $107 million, or $2.49 per share, on revenue of $1.2 billion.
Cava missed Wall Street expectations, with revenue of $280.62 million, compared to market estimates of $285.56 million, while adjusted earnings beat expectations by $0.03, reaching $0.16 per share. The Dow Jones Industrial Average (Dow) is trading down by about (182) points at 44,740, with losses of about 0.41%, while the S&P 500 Index (S&P500) is recording losses of 19 points at 6,446, with a decline of about 0.31%, and the Nasdaq Index (Nasdaq) is declining by (20 points) at 21,693, with losses of about 0.10%.