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New Record High Closes for Dow, S&P 500

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Another closing bell, another record high for both the Dow and S&P 500 indexes. The Dow gained 220 points in regular trading Wednesday, +0.63%, to a new record close a hair under 35,485. The S&P, while not quite as impressive as the blue-chip index, grew 0.25% on the day, to 4448. The Nasdaq slipped again, but only slightly: -0.16%, while the small-cap Russell 2000 gained +0.49% for Hump Day.

This morning, the Consumer Price Index (CPI) for July was more or less in-line with expectations, and represent a moderation from hotter inflation on the consumer side in recent months. And the Federal Budget Balance for July was a steep drop, though not as steep as some economists were anticipating: -$302 billion versus expectations of -$314 billion for the month.

Two notable Nasdaq stocks have released earnings after the closing bell, with eBay (EBAY - Free Report) shares slipping in late trading on an earnings meet of 99 cents per share and revenues of $2.67 billion, which was slightly better than the $2.64 billion expected. Shares initially popped up +2.5% on the release, but have since sunk into negative territory. The company had ben up +35% year to date.

eBay’s Gross Merchandise Value (GMV) fell 7% year over year to $22.1 billion, slightly below consensus estimates, though the company did announce an expansion to its share buyback program to $3 billion. However, lowered guidance on both earnings and sales in Q3 have helped move shares into the red in late trading. The stock had been up +35% year to date.

Audio production manufacturer Sonos Inc. (SONO - Free Report) posted a strong positive swing to +12 cents per share, well ahead of the consensus -17 cents, which itself was an improvement from the year-ago quarter’s -24 cents per share. Revenues also beat estimates by a wide margin: $378.7 million outpaced the $320.4 million in the Zacks consensus. Further, full-year revenue guidance was raised to $1.695 billion - $1.71 billion. Our analysts had previously been expecting $1.66 billion.

Sonos is a direct play on the home entertainment market, with high-quality audio capabilities helping bring the cinema experience to the home. The company has missed on earnings three times since its IPO in 2018, but now notches its fifth-straight beat on the bottom line. Its trailing 4-quarter earnings beat average was over 236%. Shares had popped +8% on the news, but have since mellowed to +6.5%.

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