Stock Market Update

[BRIEFING.COM] The stock market opened to a broad-based retreat following a disappointing July CPI report, with the S&P 500 (-0.2%) and DJIA (-0.3%) displaying modest early losses while the Nasdaq Composite sits flat.

The July CPI report slightly reduced the probability of a 25 basis-point rate cut at the September FOMC meeting, which currently stands at 94.6%, according to the CME FedWatch tool (down from 99.9% yesterday). 

The Wall Street Journal reports that San Francisco Fed President Mary Daly (FOMC nonvoting member) stated in an interview that she does not think a 50 basis-point rate cut is necessary at the September meeting, citing resilience in the labor market.

Stocks are mostly lower, with only the communication services (+0.3%), consumer discretionary (+0.2%), and information technology (+0.1%) sectors holding modest gains. A hot start from Amazon (AMZN 229.70, +5.14, +2.29%) masks the fact that every other company in the consumer discretionary sector, with the exception of O'Reilly Auto (ORLY 102.72, +0.08, +0.08%), currently trades in negative territory. 

Meanwhile, the materials (-1.3%), energy (-1.1%), and real estate (-1.0%) sectors display the widest losses.