U.S. Stocks Attempted to Extend Market Rally, Producer Prices Flat In July

Barry Adams
13 Aug, 2026
New York City

Stocks on Wall Street edged higher as investors weighed the latest batch of earnings, falling crude oil prices, and an update on producer price inflation. 

The S&P 500 Index edged up 0.2%, and the tech-focused Nasdaq Composite inched higher 0.3% as geopolitical uncertainty weighed on investor sentiment. 

West Texas crude oil price per barrel decreased 2.1% to $81.52, and Brent crude oil price declined 2.0% to $87.22 amid growing worry that the continued disruptions of the Strait of Hormuz are increasingly weighing on consumption. 

The Energy International Agency, an association of oil producers in the U.S. and Europe, estimated the global supply of crude oil at 6.3 million barrels per day, significantly lower than the supply level a year ago.  

The unpredictable supply and higher prices are destroying demand, forcing many developing nations to seek alternative energy sources. 

The U.S. producer prices were unchanged in July, following a revised 0.1% decrease in June, the U.S. Bureau of Labor Statistics reported Thursday. 

However, the annual measure eased to 4.7% in July from 5.5% in June, and the core measure eased to 4.2% from 4.7% in the previous month.   

 

U.S. Movers 

Cisco Systems decreased 6% to $116.40 after the networking equipment maker reported a strong fiscal fourth quarter report ending on July 25. 

Revenue increased 18% to $17.3 billion from $14.7 billion, net income soared 51% to $3.9 billion from $2.6 billion, and diluted earnings per share jumped 52% to 97 cents from 64 cents a year ago. 

The company cited AI-driven applications fueling a broad increase in demand as a "networking supercycle" accelerates. 

Networking product orders soared 40% in the fiscal fourth quarter, marking the eighth consecutive quarter of double-digit growth. 

The company declared a quarterly dividend of 42 cents to be paid on October 21 to shareholders on record on October 2. 

Cisco estimated fiscal first-quarter revenue between $18.0 billion and $18.2 billion and diluted earnings per share to range between $1.08 and $1.10. 

The company is capitalizing on a multi-year investment boom in AI infrastructure, as businesses, data center operators, and hyperscalers increase spending. 

The company revised estimated orders from hyperscalers to $7.5 billion in the fiscal 2027, compared to $4.0 billion in the fiscal 2026. 

The company estimated full-year fiscal 2027 revenue between $72.2 billion and $73.4 billion and diluted earnings per share between $4.00 and $4.06. 

Cerebras Systems plunged 15.1% to $222.49 after the AI chipmaker reported weaker than expected revenue in the second quarter. 

Total revenue increased 74% to $180.1 million from $103.3 million, net income swung to a loss of $450.5 million from a profit of $309.5 million, and diluted earnings per share swung to a loss of $2.98 from a profit of $1.91 a year a year ago. 

The company estimated adjusted core revenue in the third quarter to range between $214 million and $216 million and for the full year to range between $880 million and $890 million. 

The company guided the core negative operating margin for the third quarter to fall between 25% and 23% and, in the full year, to range between 19% and 17%.