Updated 4:15 p.m. EDT
U.S. stocks finished mixed Monday, as investors started a summer trading week largely on hold ahead of inflation data due Wednesday.
The S&P 500 index fell 5.13, or 0.12%, to 4,140.06. The Dow Industrials gained 29.07, or 0.1%, to 32,832.54. The Nasdaq Composite fell 13.10, or 0.1%, to 12,644.46.
Updated 2:43 p.m. U.S. Eastern
U.S. stocks turned mixed on Monday after the Senate passed a sweeping bill on clean energy and health care, and ahead of inflation numbers that will provide further clarity on the direction of the economy and whether the Federal Reserve’s inflation-fighting rate hikes are working.
Monday’s moves follow a weekly rise for the S&P 500 and the Nasdaq Composite as a surprisingly strong monthly jobs report eased some recession fears. The resilient labor market also signaled that the economy could withstand more rate hikes from the Fed.
The S&P 500 and Nasdaq finished last week modestly higher, while the Dow fell slightly over the period.
Some clean energy related shares including Tesla (TSLA) gained on Monday after the Senate passed a $430 billion climate bill, dubbed the Inflation Reduction Act, which is expected to be passed by the House later this week. The Invesco Solar ETF (TAN) was up 1% at last check.
A new reading for the consumer price index, slated for release Wednesday, will give investors more clarity on the central bank’s next move at its policy meeting in September.
Economists are expecting the annual pace of inflation to have moderated to 8.7% in July from 9.1% in June, which was the largest increase since 1981. But core CPI is expected to increase by 0.5% month-over-month, pushing the annual rate up to 6.1% from 5.9% in June, underlining the difficulty the Fed faces trying to get inflation back in line with its official 2% target.
Any indication that inflation is still not close to peaking could test the recent rally in U.S. stock markets. Investors will also get to hear from several Fed speakers, with policymakers under renewed pressure to deliver a third 75 basis point rate hike at their upcoming meeting in September.
Other economic reports due out this week include Producer Price Index figures for July, which will be released Thursday along with the weekly report on initial jobless claims, and the University of Michigan Consumer Sentiment Index, which will be published Friday.
Stocks on the move Monday included CVS Health (CVS) and Signify Health (SGFY).
CVS said it was looking to buy Signify as the drugstore and insurance giant looks to expand in home-health services. Signify shares ended up 11%.
Shares of United Parcel Service (UPS) ended 0.34% lower after the company agreed to acquire Italy’s Bomi Group. The Atlanta package-delivery giant is looking to bolster its medical-product-distribution business.
In other merger-Monday news, The Wall Street Journal reported that Pfizer (PFE) has agreed to buy Global Blood Therapeutics (GBT) for $5.4 billion. The deal would give the health-care giant a foothold in treating sickle-cell disease. Shares of Global Blood Therapeutics ended up more than 4%.
Tesla (TSLA) shares ended up 0.8% on the back of the Senate’s Inflation Protection Act, which promises billions in spending on climate initiatives, including the extension of a tax incentive for electric vehicles.
Walt Disney (DIS) was set to report quarterly results after the market close on Wednesday.
Names set to report this week include Palantir (PLTR), Wynn Resorts (WYNN), Six Flags (SIX), Norwegian Cruise Line (NCLH) and Spirit Airlines. (SAVE)
