Indices at Piazza Affari edged cautiously lower as investors locked in profits following a five-session rally that had propelled the blue-chip index back to mid-2007 highs.

Once again, today's session is being shaped by a flurry of corporate earnings reports.

On the macroeconomic front, several key U.S. data releases are expected this afternoon: April retail sales, weekly jobless claims (forecast to remain largely stable at 229,000 from the previous week's 228,000), and April PPI figures. Analysts anticipate the PPI may show moderation, with the annual rate easing to 2.5% from March's 2.7%, and the "core" component dipping to 3.1% from 3.3%, mirroring trends seen in the CPI.

In Europe, markets are awaiting the eurozone's flash GDP estimate for the first quarter this morning, closely watched by the ECB.

Around 9:35 a.m., the FTSE MIB index was down 0.47%, hovering near the key 40,000-point support level.

Iveco was hit hard, dropping 7% after quarterly results revealed net profit below analyst consensus. According to Equita, "the first quarter was worse than expected operationally, even compared to our below-consensus estimates, due to reduced production aimed at aligning inventories at both the company and dealer network with weaker market demand."

Pirelli also retreated 1.6%. Although its results were in line with expectations, the stock was weighed down by governance tensions stemming from a dispute between Camfin and China's Sinochem over control of the group.

Ferragamo fell sharply, down over 7%, after reporting a slight decline in first-quarter revenues, mainly due to weak demand in the Asia-Pacific region. The results were in line with expectations. Broker Equita cut its price target by 3% to €6.2 per share, citing "still elevated valuations."

Dovalue surged 8.9% post-results, buoyed by rising profits and revenues alongside an upgraded 2025 target.

Industrie De Nora was sold off, down 3.34%, as the market continued to digest results released yesterday morning.

Banks were largely overlooked, with UniCredit slipping 1.3% and Banco BPM--currently subject to a takeover bid by the Piazza Gae Aulenti-based bank--down 1.5%. Mediobanca was also weak, off 0.3%.

Finally, the oil sector also retreated, with Eni and Saipem down between 1.2% and 1.6%, while Tenaris lost 2.1%.

(Reporting by Giancarlo Navach, editing by Stefano Bernabei)