By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged lower on Wednesday
as investors assessed a larger-than-expected jump in wholesale
prices and mixed earnings reports from Macy's Inc, Deere & Co.
and Plug Power, Inc.
Wholesale prices jumped 0.6% in April, the largest increase
since the autumn of 2012. Two months of sharp rises in prices paid
by producers suggest that the era of low inflation in the U.S. may
be ending.
The S&P 500 (SPX) was 3.6 points, or 0.2%, lower at
1,893.16. The Dow Jones Industrial Average (DJI) shed 40 points, or
0.2%, to 16,674.24. The Nasdaq Composite (RIXF) fell 17 points, or
0.4%, to 4,113.22.
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action.
The only economic report on the docket was a report on U.S.
wholesale costs. Prices paid by producers jumped in April by most
since the autumn of 2012, rising sharply for the second straight
month. The rises suggest that price pressures might be building a
bit after an extended period of extremely low inflation.
The producer price index jumped a seasonally adjusted 0.6% last
month, following a revised 0.5% increase in March, the Labor
Department said Wednesday. Economists polled by MarketWatch had
expected a 0.2% increase.
Macy's gains on earnings beat, Plug Power falls
Macy's (M) shares rose 1.7% after the company reported
first-quarter earnings that beat expectations, as sales improved in
April after severe weather hurt business between January and
March.
Shares of tractor maker Deere & Co. (DE) fell 0.8% after it
reported a 9.5% profit loss as sales of equipment fell. It also
predicted a steeper-than-expected decline in equipment sales for
the full fiscal year.
Shares of Plug Power Inc. (PLUGD) reversed a late-session gain
on results and was down 7.8% in early morning trade.
Google Inc. (GOOG) and WellPoint Inc. (WLP) are among the
companies holding annual general meetings on Wednesday.
After the close of regular trading, Dow industrials component
Cisco Systems Inc. (CSCO) is seen reporting a slightly lower profit
and a revenue fall, with the outlook a key focus for analysts and
investors. Cisco: Revenue to fall again, analysts say
Shares of Take-Two Interactive Software Inc. (TTWO) lost 3.2%
after the videogame publisher projected a wider-than-expected
first-quarter adjusted loss.
Shares of Fossil Group Inc. (FOSL) dropped 7.7% after the
watchmaker provided disappointing projected earnings for the second
quarter. Read: Macy's, Deere, Cisco are stocks to watch
European stocks weaker, gold gains
In overseas markets, European stocks traded weaker. The release
of the Bank of England's May Inflation Report triggered losses for
the British pound across the board.
In Asia, the Hong Kong Hang Seng Index jumped 1% after China's
central bank told China's top bankers to cut mortgage rates and
take other actions to support the market. Gains in Hong Kong were
led by property firms. China property crash: Economists debate
outlook
In other markets, crude-oil for June delivery (CLM4) rose 59
cents to $102.29 a barrel, while gold for June delivery (GCM4)
gained 0.9% to $1,306.8 an ounce.
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