Wednesday Doldrums. The long awaited $2,000 iPhone Duo is here but it's the market that folded on Wednesday, as higher oil prices and lower bond buybacks weighed on investors' moods.

The Dow Jones Industrial Average lost 0.8% while the S&P 500 fell 0.5% and the Nasdaq Composite slipped 0.6%.

Apple introduced its first foldable iPhone (along with the new iPhone 18 models) at its annual product event, which Barron's covered live. However, the stock slipped for the day. John Ternus, its new chief executive, faces increasing pressure to introduce newer, exciting products rather than incremental enhancements to get consumers to upgrade their smartphones more frequently.

The market was more preoccupied with the Iran War, which continues to flare. The hostilities led Brent oil to climb above $100 a barrel, while WTI topped $95 per barrel, spooking investors. The market's loss is energy's gain, and the sector is having its best streak since 2007.

Investors were also disappointed by the U.S. Treasury's planned purchase of $6 billion in long-term debt, as some were hoping it would be as high as $10 billion. The bond market has been a persistent worry this year, as prices drop and yields rise, raising borrowing costs and alarm about the government's debt levels. Today's announcement did little to calm those fears.

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The Hot Stock: Datadog, Inc. Class A +7.2% The Biggest Loser: Casey's General Stores -14.2%

Best Sector: Energy +1.1% Worst Sector: Industrials -1.5%

Food Fight

With inflation readings and consumer sentiment readings out this week, investors may not not feel the need to pay attention to results from supermarket chain Kroger when it reports earnings Friday morning. But it's likely to provide the next glimpse into the struggling world of packaged food and groceries.

Groceries have been in the spotlight since Walmart announced it was cutting prices this summer, paid for in part via tariff refunds. The company recorded growth in that division in its most recent quarter, reflecting higher market share gains and sales-but some investors worried at what cost. Grocery sales were a big headwind for Casey's General Stores, which-like Walmart-saw its shares punished after it reported light same-store sales. Some industry watchers have worried about price wars amid flagging demand.

Packaged food stocks haven't been faring much better. Campbell's had its worst day since 2018 after it reported earnings, and peers like PepsiCo and General Mills are also deep in the red year to date. While there are standout exceptions, like Coca-Cola, staples in general have lagged, as companies struggle with higher input costs and flagging interest from inflation-weary (or GLP-1-using) consumers.

Kroger's earnings might be able to shed some light on a confusing consumer situation. If they report a difficult quarter, it could confirm what other consumer companies have already demonstrated: that the food business is particularly tough right now. By contrast, an upbeat reading may show that other companies simply have it wrong-or that Kroger has unlocked the secret sauce.

The Calendar

Adobe, Copart, Macy's, Oracle, and RH announce quarterly results tomorrow.

The European Central Bank announces its monetary-policy decision. The ECB is widely expected to raise its key interest rate by a quarter of a percentage point to 2.5%. Eurozone inflation was 3.3% in August, well above the central bank's 2% target.

The Bureau of Labor Statistics releases the producer price index for August. The consensus call is for a 5.2% jump from a year earlier. The core PPI, which excludes food and energy prices, is expected to rise 4.6%. This compares with increases of 4.7% and 4.2%,respectively, in July.

The National Association of Realtors reports existing-home sales for August. Consensus estimate is for a seasonally adjusted annual rate of 3.98 million homes sold, slightly less than in July. The median existing-home sale price was $434,100 in July, up 2% from a year earlier.

-Dan Lam

What We're Reading Today

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