MARKET SNAPSHOT

U.S. stocks rose and Treasury yields fell as wholesale inflation moderated. Oil settled lower despite the gridlock in tanker traffic in the Strait of Hormuz caused by threats of Iranian strikes. Gold and silver fell, while the WSJ Dollar Index rose.

MARKET WRAPS EQUITIES

U.S. stocks rose and the S&P 500 closed at a record high after a report of moderated wholesale inflation eased interest-rate fears.

The Dow Jones Industrial Average rose 0.1%, closing within 1% of a record high. The broad S&P 500 rose 0.7%, a new record high. The tech-heavy Nasdaq Composite added 0.8%.

The Producer Price Index was unchanged in July from June levels, suggesting that factory-gate inflation levelled off before the latest uptick in oil futures. The data reinforced impressions of softening inflation established by the consumer-price index earlier in the week. Odds of a rate hike in September fell further in Fed funds futures markets.

One strategist said it was a typically sleepy summer atmosphere on the stock market, with the exception of hedging activity on the CBOE Volatility Index, or VIX.

Traders are guarding against "the 'Mike Tyson,' the punch you don't see," said JJ Kinahan, senior vice president at CBOE Global Markets.

Asian equities traded mixed earlier Thursday amid the ongoing earnings season.

South Korea's Kospi gained for the fourth consecutive session, closing 3.6% higher. Japan's Nikkei Stock Average ended 1.2% higher, led by electronics stocks.

Hong Kong's Hang Seng Index dropped 0.2%, but the tech gauge rose 0.3%, fueled by an advance by Lenovo after its results.

China's Shanghai Composite and ChiNext Price Index each declined 0.5%, and the Shenzhen Composite fell 1%.

In Australia, the S&P/ASX 200 Benchmark Index fell 0.2%. New Zealand's S& P/NZX 50 Index rose 0.6%.

COMMODITIES

Crude futures settled lower after a string of gains with the U.S. and Iran both claiming to have control over the strategic Strait of Hormuz.

"The stalemate in crude price movements comes at a time when we see no horizon for a return of constructive diplomatic momentum or a return to broad escalation, at least in the very short term," XS.com senior market analyst Samer Hasn said in a note. That will keep the region "in a state of no peace and no war," he said, with the possibility of major escalation keeping the risk premium high.

The IEA's and OPEC's lowering of their demand forecasts, and the unexpectedly large build last week in U.S. crude inventories, could prevent sharp rises in oil prices, he added.

WTI settled down 2.4% at $81.25 a barrel and Brent fell 2.1% to $87.07.

Gold settled 1% lower, snapping a four-session winning streak, while silver also fell 1%, down two of the past three sessions.

TODAY'S TOP HEADLINES

U.S. Producer-Price Index Unchanged in July

Wholesale prices were unchanged last month as energy prices edged down, the Labor Department said.

The producer-price index was flat in July, after falling by 0.1% in June. Analysts surveyed by The Wall Street Journal were estimating producer prices to rise by 0.2% last month.

The data comes after the July consumer-inflation report Wednesday showed the annual inflation rate fell slightly, easing concerns the central bank would have to act sooner rather than later at its next interest rate meeting this fall.

Cleveland Fed President Says Central Bank Must 'Act Now' to Bring Down Inflation

Cooler inflation readings for July haven't changed the rate policy calculus for Beth Hammack, president of the Federal Reserve Bank of Cleveland. She said Thursday that she still believes the central bank needs to move swiftly to bring down price growth.

"I think that we need to act now, because I think we need to bring inflation back down to that 2% objective, faster than what a longer term glide path would say with interest rates at this level," Hammack said while speaking to the Dayton Area Chamber of Commerce in Ohio.

While the June and July readings of the consumer price index reports have been cooler and show that the economy is making some progress on returning to lower inflation, it's not enough, Hammack said, especially because businesses are still reporting that they are experiencing higher input costs. That could result in consumer pricing pressures remaining persistent.

Applied Materials Stock Falls After Earnings Weren't Quite Good Enough

Shares of Applied Materials fell in late trading Thursday after the chip equipment maker reported solid earnings for its fiscal third quarter.

Applied Materials remains a beneficiary of ballooning capital expenditures on artificial-intelligence processors and memory chips, but that trend also meant the company had a high bar to clear Thursday.

The stock fell 3.5% to $516 in after-hours trading. Shares tumbled 30% in July, but are up 108% this year.

OpenAI Chief Revenue Officer to Depart After Less Than a Year

OpenAI said Chief Revenue Officer Denise Dresser would be stepping down to pursue other opportunities, less than a year after she joined the artificial-intelligence company.

Dresser will be succeeded by Dali Rajic. During the interim transition period, Dresser will work closely with the business team to support customers, the company said Thursday.

Dresser is the latest senior OpenAI executive to leave the company, following the departure earlier this week of Brad Lightcap, the company's former chief operating officer. Fidji Simo, once OpenAI's second in command, told staff in July that she would leave her full-time role after a medical condition worsened.

Apple Showcases Texas Mac Mini Factory, New Manufacturing School

HOUSTON-In one of his last public appearances as Apple's Chief Executive, Tim Cook toured a Texas factory with Commerce Secretary Howard Lutnick, showing off a new manufacturing school and assembly line that later this year will start producing Mac Mini computers.

The tour demonstrated the close ties between Apple and the Trump administration, which has touted Apple's commitment to invest in the U.S. as a centerpiece of the president's effort to rebuild American manufacturing. Apple has managed to avoid some of the heavy tariffs imposed by the administration.

"Advanced manufacturing is where the puck is going," Lutnick said to a room full of workers taking a class in Apple manufacturing techniques. "The problem is we need to train Americans."

World Cup Ticket Fiasco Erases StubHub Profits, Sending Stock Down

The World Cup was supposed to bring a windfall for StubHub. Instead, it wiped out its quarterly profit and left the ticket reseller battling customers angry about fraudulent tickets and slow refunds.

Shares tumbled 16% in Thursday morning trading after the company reported quarterly expenses jumped 37%, more than offsetting a 33% surge in revenue for the quarter ended June 30.

Chief Executive Eric Baker acknowledged the problems that some buyers had with World Cup tickets. "As fans ourselves, we understand the disappointment when these issues occur," he said in response to analyst questions late Wednesday. "Our marketplace only works when fans attend an event."

Bill Ackman Calls His New Fund's Slumping Stock Price 'Frankly Absurd'

Bill Ackman's stock-picking funds are trailing the broader market so far this year. He's hoping a portfolio makeover, including fresh bets on companies such as Netflix and Visa, can help turn things around.

The billionaire investor held his first earnings call Thursday since he staged a simultaneous public listing of a new fund, Pershing Square USA, and his management company, Pershing Square.

Pershing Square USA, known by its ticker PSUS, gained only 0.6% on its investments since its debut in late April through Tuesday. Meanwhile, his London-listed fund, Pershing Square Holdings, lost over 4% this year through Tuesday, compared with a 13.7% total return for the S&P 500 over the same period.

Sandisk Defies Memory Market Slowdown Concerns with Bold 2030 Targets

Sandisk stock rose sharply Thursday after the memory supplier dispelled worries about a slowdown in the memory market with an ambitious long-term growth plan.

Sandisk expects revenue to grow by mid-to-high-teen percentages annually between fiscal years 2028 and 2030, it said at its 2026 Investor Day. The company also forecast adjusted gross margins to stabilize at around 80% during that period, with an adjusted free-cash-flow margin of about 50%.

Sandisk plans to return all excess cash to shareholders "after investing in the business," said Chief Financial Officer Luis Visoso.

Expected Major Events for Friday 01:30/AUS: 2Q Lending Indicators

01:30/SKA: Jul Economic Trends, including household loans, money supply index Lf

03:00/SKA: KDI Economic Outlook Update

03:00/SKA: Jun Money Supply index L

04:01/MAL: 2Q Balance of Payments

04:01/MAL: 2Q GDP

07:30/THA: Weekly International Reserves

08:30/HK: 2Q GDP

09:59/CHN: Jul Broad Money M2

09:59/CHN: Jul FDI Foreign Direct Investment

00:00/SKA: Jul Revised trade data

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