US open: Flat start as eyes turn to Thursday’s CPI report

by | Aug 9, 2023

(Sharecast News) – It was a flat start on Wall Street on Wednesday as investors awaited key economic data on US inflation later in the week.
Losses were only mild early on, with the DJIA down 0.03% at 35,305.23, the Nasdaq down 0.29% at 13,834.62 and the S&P 500 down 0.15% at 4,492.48 as of 0945 ET. The S&P 500 has declined for five out of the six previous trading sessions.

In economic news, China fell into deflation in July, with consumer prices falling 0.3% year-on-year (after a 0.2% gain in June) on the back of a sharp drop in food inflation from +2.3% to -1.7%,.

Earlier in the week, China’s customs administration reported a 14.5% drop in exports for the month of July, following a 12.4% fall in June and worse than the consensus estimate of -13.2%. Imports also declined more than expected, by 12.4% after slipping 6.8% in June.

There were no other major economic data releases scheduled for Wednesday, with all eyes turning to US inflation and jobless claims data on Thursday, and UK GDP figures on Friday.

Forecasts are pointing to annual consumer price inflation to have picked up to 3.3% in July, up from 3% the month before, while jobless claims are expected to come in at 230,000 (previous: 227,000).

Lyft and Roblox in the red

Lyft disappointed the market with its second-quarter earnings late Tuesday evening, which showed that top-line growth came in at just 3% as it continues to compete with rival Uber on price. The company said revenue per active user fell by 5% to $47.51 in the quarter. Credit Suisse maintained its ‘outperform’ rating on the stock but cut its target price from $23 to $18.

Roblox shares tanked after the gaming platform failed to meet forecasts with its second-quarter earnings, as daily active users dropped 1%. Customers spent 14bn hours on the platform in the three months to 30 June; the forecast was 14.4bn.

Shares in Penn Entertainment surged after the gambling company announced a deal with Disney-owned ESPN, with a newly launched ESPN Bet sportsbook launching in 16 states later this year. Disney meanwhile reports its third-quarter earnings after the closing bell on Wednesday.

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