Stocks were recovering from their morning lows on Wednesday afternoon.
The S&P 500 gained 0.05% midday, and the tech-heavy Nasdaq Composite rose 0.85%. Meanwhile, the Dow Jones Industrial Average fell by 0.45%, and the Russell 2000 Index declined 0.18%.
The Consumer Price Index, which gauges the cost of goods and services throughout the U.S. economy at the consumer level, rose 0.2% in August, matching the consensus estimate.
This brought the 12-month inflation rate to 2.5%, a decrease of 0.4 percentage point from July and the lowest level since February 2021.
“This isn’t the CPI report the market wanted to see. With core inflation coming in higher than expected, the Fed’s path to a 50 basis point cut has become more complicated,” Principal Asset Management’s chief global strategist, Seema Shah, said, according to CNBC.
GameStop continues to face growth challenges.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
First Solar (FSLR) +11.9% Albemarle (ALB) +10.9% AES (AES) +6.8% Super Micro Computer (SMCI) +4.9% Quanta Services (PWR) +4.6%
The worst-performing five S&P 500 stocks with the largest midday drop are:
Humana (HUM) -4.2% CarMax (KMX) -3.8% Rollins (ROL) -3.7% Conagra Brands (CAG) -3.7% Match Group (MTCH) -3.7%
Stocks also worth noting include:
GameStop (GME) -14.1%Trump Media (DJT) -13.3%Nvidia (NVDA) +4.7%Apple (AAPL) +0.5%Lucid (LCID) +10.3%
GameStop tumbles after revenue miss
GameStop stock tumbled 15% midday after the company reported disappointing Q2 earnings.
For the quarter ended Aug. 3 the videogame retailer reported earnings of 4 cents a share, surpassing analysts’ expectations of a 9-cent loss. But revenue of $798.3 million marked a drop from $1.16 billion a year earlier and fell short of analysts’ forecast of $895.7 million.
Related: GameStop CEO mulls harsh decision after earnings surprise
GameStop does not hold conference calls to discuss results.
Wedbush analysts said the company continued to face growth challenges, including the shift from physical game disks to digital sales, Barron’s reported.
“Management continues to shun investor interaction, forgoing the customary conference call and Q&A session that typically accompanies earnings releases,” according to Wedbush’s analyst note.
Albemarle surges on lithium production adjustment
Albemarle stock jumped 10% after Contemporary Amperex Technology, the world’s largest maker of electric-vehicle batteries with a 40% market share, would suspend some lithium-ore mining and halt some lithium carbonate production, according to Citi analyst Jack Shang’s comments reported by Barron’s.
Related: Analyst unveils bold ‘Apple-esque’ Tesla stock forecast
Lithium, a crucial material for EV batteries, is currently in oversupply, causing prices to drop by around 60% over the past year. A potential production cut could help balance supply and demand, potentially stabilizing or boosting lithium prices.
Albemarle is the Charlotte chemicals manufacturer with three divisions: lithium, bromine specialties, and catalysts.
Trump Media falls on presidential candidates’ debate
The Truth Social platform’s parent, Trump Media & Technology, slid more than 12% after the debate between Republican nominee Donald Trump and Democratic Vice President Kamala Harris.
Harris was perceived by many observers as having performed better in the debate. Taylor Swift endorsed Harris on Instagram after the debate.
More Automotive:
Huge automaker is pulling the plug on ambitious EV plansHyundai’s latest EV is a threat breathing down Tesla’s neckPark next to a crime? Police say your Tesla may be a star witness
Trump owns about 60% of Trump Media & Technology Group. His personal stake in the company surpassed $6 billion in March after its shares surged following their public market debut. That fortune has since dwindled to under $2 billion due to losses and declining revenue at the company, CBS News reported.
The Tuesday debate was hosted by ABC News at the National Constitution Center in Philadelphia. The previous debate in late June led to President Biden’s withdrawal following his stumbling performance against Trump.
Related: Veteran fund manager sees world of pain coming for stocks
