Broadening of Inflation from Food to Household Goods Restrain Consumer Spending, Wall Street Stocks Struggle to Advance

Barry Adams
19 Aug, 2025
New York City

Stock market indexes on Wall Street meandered as investors prepared to review quarterly results from big-box retailers. 

The S&P 500 index decreased 0.1%, the Nasdaq Composite fell 0.4%, and the benchmark indexes hovered near record highs. 

Investor sentiment has remained positive amid a steady stream of positive earnings from tech and industrial companies and better-than-expected news on the inflation front. 

The sharp escalation in U.S. tariffs to close to 19% in August from 3% last year has kept investors on edge and stoked fears of a gradual increase in retail prices in the months ahead. 

Retailers are expected to pass over higher prices to consumers in a steady fashion so as to not invite threats from the White House.

In addition, wholesale prices of food soared more than 11% in July, according to the producer price index report released last week by the U.S. government.

The wholesale report confirmed that the sharp shrinkage in the migrant labor force and the surge in duties on food imports have contributed to the rise in food prices, contrasting the messaging from the Trump administration.

 

Mixed New Housing Construction Data In July

New home construction in July showed a mixed picture as home builders struggled to adjust to frequent changes in the U.S. trade policy. 

Seasonally adjusted authorized housing permits in July were 1.354 million, a 5.7% decline from the revised 1.436 million a year ago and 2.8% lower than the revised June rate of 1.393 million. 

The seasonally adjusted housing starts annual rate was 1.428 million, an increase of 12.9% from 1.265 million and 5.2% above the revised rate of 1.358 million. 

Across the country, starts in the Midwest soared 33.3% to 252,000, and in the South, they advanced 19.2% to 833,000, offsetting the contractions in the West of 27.5% to 232,000 and in the Northeast of 11.6% to 111,000.

The housing completions annual rate in July was 1.415 million, a sharp decline of 13.5% from the 1.635 million rate a year ago and 6% higher than the revised rate of 1.335 million in the previous month.

 

U.S. Stock Movers

Palo Alto Networks Inc. rose 4.9% to $184.80 after the cybersecurity company reported better-than-expected quarterly results and issued a higher-than-expected outlook for the current quarter and full fiscal year.

Consolidated revenue in the fiscal fourth quarter ending in July increased to $2.5 billion from $2.2 billion, net income dropped to $253.8 million from $357.7 million, and diluted earnings per share fell to 36 paise from 51 paise a year ago.

Palo Alto guided fiscal 2026 first-quarter revenue to rise by 15% to between $2.45 billion and $2.47 billion and diluted non-GAAP earnings per share to between $0.88 and $0.90, using 709 million to 712 million shares outstanding.

A few weeks ago, the company agreed to acquire Israel-based identity security provider CyberArk for $25 billion, the company's largest acquisition. 

Freightos Ltd. declined 0.6% to $3.59 after the digital freight booking and logistics platform provider reported a 32% increase in revenue, and net loss shrank in the latest quarter.

Consolidated revenue in the June quarter advanced to $7.4 million from $5.6 million, net loss shrank to $4.3 million from $5.3 million, and diluted loss per share shrank to 9 cents from 11 cents a year ago.

Freightos guided third-quarter revenue to be between $7.6 million and $7.7 million and adjusted EBITDA to be between $2.6 million and $2.5 million.

Intel Corporation increased 5.7% to $25.02, and Japan-based SoftBank Group agreed to acquire a 2% stake in the company for $2 billion. 

SoftBank agreed to pay $23 a share, according to a joint statement released by the two companies. 

The U.S. federal government may take as much as its 10% stake in the company, after a meeting between the U.S. president and the company's chief executive, Lip-bu Tan. 

Home Depot Inc. increased 1.6% to $401.10, and the do-it-yourself retailer reported weaker-than-expected second-quarter results. 

The retailer reported same-store sales increased 1%, after falling 3.3% in the period a year ago and declining 2% in the period two years ago. 

Nexstar Media Group jumped 7.3% to $221.50, and the company agreed to acquire its smaller rival Tegna Inc. for $22 a share, or $3.54 billion. 

Tegna advanced 4.4% to $21.07 after the announcement of the deal.