CNBC Daily Open: There’s a new narrative in markets

Losing week for stocks
U.S. stocks were mixed Friday, with the Dow Jones Industrial Average the lone large scale to eke retired a gain. Europe's Stoxx 600 scale sank 1.09%, weighed down by a 2.1% driblet successful exertion stocks. Meanwhile, the U.K. amazed with a better-than-expected 0.2% growth successful gross home merchandise during the 2nd quarter.

Higher shaper costs
U.S. wholesale prices rose 0.3% successful July. That's much than economists had expected and the biggest monthly summation since January. On a year-over-year basis, the shaper terms scale was up 0.8%. The PPI tends to bespeak terms changes earlier they filter into the user terms index, truthful this could dampen the enthusiasm implicit July's cooler-than-expected CPI.

Jail for SBF
FTX laminitis Sam Bankman-Fried headed to jail Friday aft a justice revoked his bail implicit alleged witnesser tampering. Government prosecutors said Bankman-Fried had sent implicit 100 emails to the media, including backstage diary entries of his ex-girlfriend, Coraline Ellison, to the New York Times. Bankman-Fried's expected to stay successful custody until his transgression proceedings connected Oct. 2.

Nvidia's unthinkable year
Nvidia's shares are up 180% this year, beating each different banal successful the S&P 500 and making Nvidia the fifth-most invaluable U.S. company. But that gives its banal a existent price-to-earnings ratio of 220, a aggregate much than 3 times higher than Tesla's. CNBC's Kif Leswing explains the trajectory down Nvidia's ascent, and wherever the chipmaker could spell from here.

[PRO] Week of the consumer
The U.S. user is successful absorption this week. July's retail income information comes retired Tuesday. Alongside that volition beryllium net reports from a scope of retailers, ranging from big-box merchandisers similar Target, discount shops similar TJX Companies and luxury retailers similar Tapestry, which owns Coach and Kate Spade. They'll springiness a snapshot of whether the user tin continue propping up the U.S. economy.

There's a caller communicative successful markets.

The Nvidia-fueled rally that began successful May seems to beryllium petering out. Expectations of bumper net are present baked into banal prices — and investors are realizing how costly artificial quality stocks are. The VanEck Semiconductor ETF was down 5.2% for the week, its worst since October 2022.

At the aforesaid time, the U.S. system is growing truthful overmuch much than anticipated that Wall Street thinks a recession isn't happening this year. Economists, according to a Philadelphia Federal Reserve poll, are besides revising upwards their maturation forecasts.

A robust system means higher request for goods and services. One barometer of that is oil. Indeed, prices for lipid person rallied for 7 consecutive weeks, the archetypal clip since June 2022. To beryllium sure, that's mostly due to the fact that of supply constraints for now, but increased demand volition surely construe into higher prices soon.

That's bully quality for investors successful vigor stocks, which led the marketplace Friday, past week, this period and this quarter, arsenic CNBC's Scott Schnipper observed. The VanEck Oil Services ETF roseate 2% past week, handily beating the VanEck Semiconductor ETF.

But that's atrocious quality for investors wary of involvement rates. Higher commodity prices and request mightiness mean the Federal Reserve whitethorn not intermission — oregon chopped — rates arsenic soon arsenic markets expect. The hotter-than-expected PPI speechmaking adds credence to this caller narrative.

Markets were shaken. The S&P 500 mislaid 0.1% and the Nasdaq Composite slid 0.6%, giving some indexes their 2nd consecutive losing week. For the Nasdaq, that's its longest down streak since December. The Dow Jones Industrial Average, however, managed to eke retired a 0.3% summation to beforehand 0.6% for the week.

The week up is dominated by user spending data, which tin beryllium fuzzy due to the fact that it tends to fluctuate by play and sentiment. Prepare for much volatility.