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* U.S. producer prices rise solidly in August
* Apple falls after 'Fortnite' case ruling
* Kroger falls as shipping woes hurt margins
* Indexes: Dow -0.16%, S&P 500 -0.08%, Nasdaq -0.01%
Sept 10 (Reuters) - Wall Street was mixed on Friday as
investors weighed signs of higher inflation, while Apple Inc
tumbled following an unfavorable court ruling related
to its app store.
U.S. producer prices rose solidly in August, leading to the
biggest annual gain in nearly 11 years and indicating that high
inflation was likely to persist as the pandemic pressures supply
chains, data showed.
Sentiment also took a hit from Cleveland Federal Reserve
Bank President Loretta Mester's comments that she would still
like the central bank to begin tapering asset purchases this
year despite the weak August jobs report.
The S&P 500 has risen almost 20% in 2021, buoyed by support
from dovish central bank policies and re-opening optimism.
However, Wall Street has moved sideways in recent sessions
as investor digest indications of increased inflation and
concerns about the Delta variant's impact on the economic
recovery. Investors are also uncertain about when the Federal
Reserve may begin reducing massive measures enacted last year to
shield the economy from the pandemic.
"The market is taking a breather," said Greg Bassuk, CEO of
AXS Investments. "Investors are looking for some outsized news
or information that is beyond the band of expectations,
something much more outsized, positively or negatively, that
will give investors better visibility into how things are going
to look for the balance of the year."
Apple fell 2.6% after a judge struck down a core part of its
App Store rules, benefiting app makers.
Shares of app makers rallied, with Spotify Technology
, Activision Blizzard and Electronic Arts
each gaining about 3%.
In afternoon trading, the Dow Jones Industrial Average
was down 0.16% at 34,822.07 points, while the S&P 500
lost 0.08% to 4,489.53.
The Nasdaq Composite dropped 0.01% to 15,246.75.
The three main U.S. indexes got some support early from news
of a phone call between U.S. President Joe Biden and Chinese
leader Xi Jinping that was taken as a positive sign, which could
bring a thaw in ties between the world's two most important
Seven of the eleven S&P 500 sector indexes were lower, with
utilities and healthcare among the weakest,
down 0.8% and 0.7%, respectively.
U.S.-listed Didi Global fell 3.5% after Chinese
government officials told leading delivery and ride-hailing
companies to improve how they distributed incomes and ensure
rest periods for workers.
Grocer Kroger Co dropped 8% after it said global
supply chain disruptions, freight costs, discounts and wastage
would hit its profit margins.
Advancing issues outnumbered declining ones on the NYSE by a
1.06-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored advancers.
The S&P 500 posted 15 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 52 new highs and 41 new lows.
(Additional reporting by Shashank Nayar and Shreyashi Sanyal in
Bengaluru; Editing by Aditya Soni and Aurora Ellis)