Stocks wobble following inflation report Energy prices

NEW YORK – Stocks swung through shaky trading Thursday following the latest update on inflation across the U.S., only to end up roughly where they started.

The S&P 500 edged up by 1.12, or less than 0.1%, to 4,468.83. It was just the second winning day for the index in the last eight, but it had been up 1.3% in the morning before wobbling between small gains and losses.

The Dow Jones Industrial Average gained 52.79, or 0.2%, to 35,176.15 after giving up most of a morning gain of 455 points. The Nasdaq composite added 15.97, or 0.1%, to 13,737.99. The Russell 2000 index of smaller companies fell 8.15 points, or 0.4%, to 1,922.62.

The morning’s highly anticipated report showed U.S. consumers paid prices that were 3.2% higher in July than a year earlier. That’s a touch milder than the 3.3% inflation rate economists expected to see and down sharply from last summer’s peak above 9%. Beneath the surface, underlying trends for inflation were also within expectations.

The readings bolstered hopes among investors that the Federal Reserve’s campaign to grind down inflation is progressing and that it could maybe even be done hiking interest rates. High rates undercut inflation by slowing the entire economy and hurting investment prices.

Such hopes helped the S&P 500 rally a big 19.5% through the first seven months of the year. But critics have been saying Wall Street latched too quickly and forcefully on to a belief that inflation will continue to cool, the economy will avoid a recession and the Fed has already hiked rates for the final time this cycle. Several economists said again on Thursday that future moves by the Fed are still uncertain, tamping down some enthusiasm.

Another report on inflation, featuring the July data at the wholesale level, is coming on Friday. More reports on inflation and one more on overall hiring for August will arrive before the Fed’s next meeting that ends Sept. 20.

Big U.S. companies, meanwhile, continue to report mostly better profits for the spring than analysts expected. That’s usually the case, and analysts had particularly low expectations coming into this reporting season. Higher costs for workers and other expenses are broadly eating into profit margins.

The Walt Disney Co. rose 4.9% after saying it would raise prices for some of its streaming services in hopes of boosting profitability. The entertainment giant reported

Benchmark U.S. crude oil for September delivery fell $1.58 to $82.82 a barrel Thursday. Brent crude for October delivery fell $1.15 to $86.40 a barrel.

Wholesale gasoline for September delivery fell 3 cents $2.90 a gallon. September heating oil fell 6 cents to $3.15 a gallon. September natural gas fell 20 cents to $2.76 per 1,000 cubic feet. stronger profit for the spring than analysts expected but weaker revenue.

Capri Holdings, which owns the Michael Kors, Versace and Jimmy Choo brands, soared 55.7% as Big Fashion continues to consolidate. Tapestry, the company behind luxury handbag and accessories retailer Coach, said it was buying Capri for roughly $8.5 billion. Tapestry fell 15.9%.

Gold for December delivery fell $1.70 to $1,948.90 an ounce. Silver for September delivery rose 9 cents to $22.82 an ounce. September copper fell 1 cent to $3.77 a pound.

The dollar rose to 144.72 Japanese yen from 143.70 yen. The euro rose to $1.0990 from $1.0976.