Ticker: Strong AI chip demand fuels Nvidia’s Q2 results
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Nvidia's latest quarterly results once again blew past Wall Street's expectations as revenue for the computer chip company's high-end artificial intelligence chips soared, the latest sign that AI infrastructure spending remains strong.
The company on Wednesday reported net income of $59.69 billion, or $2.46 per share, for the May-July period. Excluding certain items, earnings were $2.22 per share, well above the $2.09 per share consensus forecast by Wall Street analysts, according to FactSet. Revenue more than doubled from a year earlier to $96.22 billion, surpassing analysts' average forecast of $92.27 billion.
Lucky Charms, Trix to ditch artificial colors
General Mills has removed artificial dyes from all its U.S. cereals, including Lucky Charms and Trix. The Minneapolis company has shifted to fruit and vegetable-based dyes as well as colors derived from spices like turmeric and paprika.
General Mills said Wednesday that 90% of its U.S. retail products are now free of artificial dyes. Products that still contain them, like some Betty Crocker cake mixes and Fruit Roll-Ups, will transition to natural dyes by the end of 2027. General Mills' rival WK Kellogg said earlier this month that it will remove artificial colors from all its U.S. cereals by the end of this year.
Fed governor slams Trump's threat to fire her
Federal Reserve governor Lisa Cook says the Trump administration has no legal basis to remove her from the central bank's governing board. Her response to renewed threats from the White House came in a letter late Wednesday.
Trump first sought to fire Cook a year ago over allegations that she committed mortgage fraud, which she denies. The charge has not been proven or considered in court. The Supreme Court ruled that Cook could remain in her position while the case is litigated. The justices also said Trump could try to fire her again if he provided proper notice and a chance to contest it.
Wall Street holds steady following inflation update
The U.S. stock market drifted through a quiet day of trading after a report said inflation last month was a touch worse than economists expected. The S&P 500 edged down by less than 0.1% Wednesday and remains near its all-time high set earlier this month.
The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite slipped 0.1%. Treasury yields ticked higher following the update on inflation, which has traders still mostly betting the Federal Reserve will hike the federal funds rate by the end of this year. Oil prices slipped following some more swings up and down throughout the day.
US economy expanded at 1.5% pace in Q2
The U.S. economy grew at a sluggish 1.5% pace from April through June. But consumer spending stayed strong. The Commerce Department reported Wednesday that growth in gross domestic product -- the nation's output of a goods and services -- decelerated from a 2.1% pace from January through March.
The second-quarter growth number was unchanged from the department's first estimate. Still, consumer spending -- which accounts for about 70% of U.S. economic activity -- increased at a healthy 3.4% annual clip, up from 0.5% in the January-March period. The reason for the lackluster growth number was a surge in imports.