US Stocks See Mixed Close as Cisco and SpaceX Shares Soar
The US stock market closed mixed on Wednesday, with the Dow Jones Industrial Average slipping by a negligible 0.04% to $53,770.27. In contrast, the S&P 500 and Nasdaq indices gained 0.26% and 0.54%, respectively, at $7,748.50 and $26,588.48.
The July Consumer Price Index (CPI) rose by 3.4% year-over-year, a slight decrease from June's 3.5%. Core inflation slowed to 2.5% from 2.6%, matching market expectations. Meanwhile, monthly inflation rose by just 0.1%, as lower energy and gasoline prices offset increases in shelter and services.
Market expectations for a September Federal Reserve rate hike fell to 43% from 54.4% a week earlier.
Cisco Systems Inc., or CSCO, led the pack with a 2.86% gain to $123.88, reaching an intraday high of $124.45 and a low of $122.26. The company reported fourth-quarter revenue of $17.25 billion, surpassing analyst estimates of $16.82 billion. Adjusted earnings of $1.22 per share also exceeded expectations.
Cisco highlighted its 'networking supercycle' as a key driver of success, with total product orders increasing by 35% year-over-year. Double-digit growth across all geographies and customer markets indicates strong demand for the company's technology.
SpaceX shares surged 9.65% to $146.15 after announcing that its Starlink service now serves over 13 million consumer subscribers, up from 12 million as of June 30. The company also supports approximately 22 million monthly Starlink Mobile users through partnerships with 36 mobile network operators.
Cerebras Systems Inc., or CBRS, saw its stock jump 11.63% to $262.06 before crashing by 16.61% in after-hours trading to $218.53. The company reported a second-quarter GAAP loss of $2.98 per share and revenue of $180.11 million, missing the $194.2 million analyst estimate.
However, core revenue more than doubled to $210 million while its cloud business nearly quadrupled year-over-year. Infleqtion Inc., or INFQ, reported a 116% year-over-year revenue increase driven by quantum technology. The company's second-quarter revenue of $12.63 million beat analyst estimates of $10.64 million.
Coherent Inc.'s shares rose 8.24% to $355.64 after reporting quarterly earnings of $1.74 per share, beating the consensus estimate of $1.61. Quarterly revenue reached $2.05 billion, surpassing analyst expectations and marking an increase from $1.53 billion in the same period last year.