Major US indexes close lower as focus shifts to inflation data, debt talks
Updates to closing, adds quote in paragraph 5 and 12
Skyworks, Paypal drop on downbeat forecasts
Novovax surges on layoff plans
US CPI report due on Wednesday
By Carolina Mandl and Caroline Valetkevitch
NEW YORK, May 9 (Reuters) - Major U.S. stock indexes closed loweron Tuesday as investors grew more cautious ahead of a U.S. consumer price index report and a meeting between U.S. political leaders to discuss the debt ceiling.
Investors will look for clues on whether inflation is continuing to ease following the Labor Department's consumer price index (CPI) report on Wednesday.
Talks over the U.S. debt ceiling are adding to caution in the market as traders were also waiting for an update on plans for the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House.
Worries of a potential government default loom over Washington as early as June 1, if Congress does not act to resolve the deadlock.
"Overall, it's a relatively mild day, but both the debt ceiling as well as the inflation are causing some anxiety," said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.
According to preliminary data, the S&P 500 .SPX lost 18.87 points, or 0.46%, to end at 4,119.25 points, while the Nasdaq Composite .IXIC lost 77.36 points, or 0.63%, to 12,179.55. The Dow Jones Industrial Average .DJI fell 54.67 points, or 0.16%, to 33,564.02.
Disappointing forecasts from companies such as PayPal and Apple supplier Skyworks also weighed on the mood, while regional banks like Pacwest Bancorp rose.
Shares of PayPal Holdings PYPL.O dropped and pressured the benchmark S&P 500 after the company cut its margin forecast. The stock was also among the top drags on the Nasdaq.
Skyworks Solutions Inc SWKS.O shares slid after the company forecast current-quarter revenue and earnings below estimates.
"Companies have generally been beating earnings expectations, but earnings season is always choppy, and today we have some weaker results. That's weighing a bit on the market," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Shares of other Apple suppliers including Qualcomm QCOM.O, Broadcom AVGO.O, Qorvo QRVO.O and Corning GLW.N were also lower. The Philadelphia SE Semiconductor Index .SOX was down.
Boeing Co BA.N rose after budget carrier Ryanair Holdings Plc RYA.I placed a multi-billion dollar order for Boeing jets.
Novavax NVAX.O surged as the drugmaker plans a 25% cut to its global workforce.
Under Armour Inc UAA.N lost ground as the sports apparel maker saw its annual sales and profit below street expectations.
Dialysis services provider DaVita Inc DVA.N jumped on a rise in its annual profit forecast as demand for procedures pick up in the U.S.
LPL's Debt ceiling sell-off graphic: April-Oct 2011https://tmsnrt.rs/3M6SRML
Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru and additional reporting by Caroline Valetkevitch in New York; Editing by Sonia Cheema, Anil D'Silva and Deepa Babington
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