US close: Stocks reverse gains to end another day weaker

Wall Street indices reversed their earlier gains to close weaker on Wednesday, after fresh data showed growth in America’s cost of living fell in April, but not as much as had been expected.

At the close the Dow Jones Industrial Average was down 1.02% at 31,834.11, as the S&P 500 lost 1.65% to 3,935.18 and the Nasdaq Composite tumbled 3.18% to 11,364.24.

The Dow closed 326.63 points lower on Wednesday, adding to the losses recorded in what was a mixed session for major indices on Tuesday.

“Inflation has been a hot topic lately as there are growing concerns about a cost-of-living crisis,” said Equiti Capital market analyst David Madden.

“The US CPI report boosted volatility in the markets as fears briefly ticked up the Fed might look to continue down the path of aggressively hiking rates.”

Madden said traders were “spooked” by the fact that both reports topped forecasts, meaning the Fed might look at another 50-basis point hike in the coming months.

“Immediately after the numbers, US index futures swung from positive territory to lower on the day, and European markets lost a lot of the gains they had made.”

Wednesday's primary focus was news that growth in the cost of living in the US dipped in April, but not by as much as anticipated amid continued rises in food prices throughout the month.

According to the Department of Labor, in seasonally adjusted terms the annual rate of headline consumer price inflation slipped from 8.5% in March to 8.3% for April.

However, in month-on-month terms, CPI rose by 0.3% after jumping by 1.2% during March.

In other macro headlines, US mortgage applications rose 2% in the week ended 6 May, according to the Mortgage Bankers Association of America, up from the previous week's 2.5% increase.

On the corporate front, burger and baked potato chain The Wendy's Company plunged 11.22% after the company reported both earnings and revenues that fell short of Wall Street estimates.

Streaming giant Netflix was off 6.35% after the New York Times reported on the firm’s plans to launch an advertising-supported package and restrict password sharing, amid backlash to its latest round of price rises.

On the upside, Krispy Kreme was ahead 2.77% after the donut baker beat expectations on both revenue and profit and reiterated its outlook for the full year.

Perrigo was also in the green, rising 2.94% even after the generic pharmaceuticals producer missed expectations by swinging to a loss in the first quarter.

Dow Jones - Risers

Visa Inc. (V) $197.01 1.62%
Merck & Co. Inc. (MRK) $89.19 1.57%
Dow Chemical Co. (DOW) $66.79 1.49%
Chevron Corp. (CVX) $163.16 1.48%
International Business Machines Corporation (CDI) (IBM) $130.75 1.25%
Caterpillar Inc. (CAT) $205.21 1.09%
Coca-Cola Co. (KO) $64.31 0.47%
Walgreens Boots Alliance, Inc. (WBA) $43.35 0.09%
Honeywell International Inc. (HON) $230.94 0.00%
Dowdupont Inc. (DWDP) $30.52 0.00%

Dow Jones - Fallers

Apple Inc. (AAPL) $146.50 -5.18%
Salesforce.Com Inc. (CRM) $161.27 -3.52%
Microsoft Corp. (MSFT) $260.55 -3.32%
Home Depot Inc. (HD) $282.96 -2.82%
Intel Corp. (INTC) $42.83 -2.68%
Boeing Co. (BA) $129.39 -2.68%
Walt Disney Co. (DIS) $105.21 -2.29%
3M Co. (MMM) $146.41 -1.82%
Cisco Systems Inc. (CSCO) $48.65 -1.82%
American Express Co. (AXP) $159.39 -1.51%

S&P 500 - Risers

H&R Block Inc. (HRB) $28.41 19.52%
Electronic Arts Inc. (EA) $120.49 7.97%
Duke Realty Corp. (DRE) $53.46 7.83%
Philip Morris International Inc. (PM) $103.63 4.79%
Hess Corp. (HES) $109.69 3.71%
DENTSPLY Sirona Inc. (XRAY) $37.68 3.57%
Marathon Oil Corp. (MRO) $25.18 3.20%
Mosaic Company (MOS) $59.46 3.16%
Perrigo Company plc (PRGO) $33.25 2.94%
HF Sinclair Corporation (DINO) $45.04 2.88%

S&P 500 - Fallers

Dish Network Corp. (DISH) $17.46 -19.72%
Macy's Inc. (M) $20.29 -8.93%
Macerich Co (MAC) $12.04 -7.46%
Nektar Therapeutics (NKTR) $3.59 -7.24%
T. Rowe Price Group Inc. (TROW) $114.78 -6.61%
Whirlpool Corp. (WHR) $176.53 -6.39%
Netflix Inc. (NFLX) $166.37 -6.35%
Tapestry Inc. (TPR) $26.52 -6.26%
Nordstrom Inc. (JWN) $21.73 -6.21%
Lennar Corp. Class A (LEN) $71.30 -5.89%

Nasdaq 100 - Risers

Electronic Arts Inc. (EA) $120.49 7.97%
DENTSPLY Sirona Inc. (XRAY) $37.68 3.57%
Trip.com Group Limited (TCOM) $19.99 1.89%
Take-Two Interactive Software Inc. (TTWO) $105.26 1.61%
Check Point Software Technologies Ltd. (CHKP) $122.28 1.49%
Booking Holdings Inc. (BKNG) $2,072.15 1.33%
CSX Corp. (CSX) $33.17 1.19%
Monster Beverage Corp (MNST) $84.91 0.92%
Activision Blizzard Inc. (ATVI) $77.47 0.72%
Expedia Group Inc. (EXPE) $133.22 0.66%

Nasdaq 100 - Fallers

Dish Network Corp. (DISH) $17.46 -19.72%
Mercadolibre Inc. (MELI) $679.68 -12.24%
Qurate Retail Inc. (QRTEA) $3.39 -9.12%
Tesla Inc (TSLA) $734.00 -8.25%
Netflix Inc. (NFLX) $166.37 -6.35%
Workday, Inc. (WDAY) $173.14 -5.73%
Nvidia Corp. (NVDA) $166.30 -5.48%
Microchip Technology Inc. (MCHP) $64.56 -5.41%
Apple Inc. (AAPL) $146.50 -5.18%
Biomarin Pharmaceutical Inc. (BMRN) $75.68 -4.72%

Reporting by Josh White at Sharecast.com. Additional reporting by Iain Gilbert.