Stock Market Update

[BRIEFING.COM] Opening gains for the DJIA (+0.3%) propelled it to a record-high intraday level just after the open, while the S&P 500 (-0.2%) also notched an all-time intraday level before retreating. Meanwhile, the Nasdaq Composite (-0.5%) lags.

Seven S&P 500 sectors trade in positive territory, though a notable loss in the information technology sector (-1.0%) stifles growth this morning. The sector faces weakness in NVIDIA (NVDA 178.31, -3.71, -2.04%) and other chipmakers, pushing the PHLX Semiconductor Index to an early loss of 2.4%. 

On the contrary, the health care sector (+1.3%) holds a nice early gain as shares of UnitedHealth (UNH 299.83, +28.34, +10.44%) trade higher after Berkshire Hathaway (BRK.B 481.36, +2.30, +0.5%) disclosed that it purchased over 5 million shares in UNH last quarter, worth around $1.6 billion.

Import prices were up a sizable 0.4% month-over-month, but down 0.2% year-over-year, on the heels of a 0.1% decline in June. Excluding fuel, they were up 0.3% month-over-month, and up 0.9% year-over-year, following a 0.3% decline in June. Export prices increased 0.1% and were up 2.2% year-over-year. Excluding agricultural products, prices were also up 0.1% and up 2.0% year-over-year.

The key takeaway from the report is the uptick in import prices, which is clouding the inflation outlook in the sense that it is keeping the market guessing as to whether tariff inflation is going to ramp in coming months or if this is just a one-time bump in the road.

Just released, the August University of Michigan Consumer Sentiment Index had a preliminary reading of 58.6 (Briefing.com consensus 61.3), down from the final July reading of 61.7.

June Business Inventories increased 0.2% (Briefing.com consensus 0.1%) from a prior level of 0.0%.