Stocks took a breather on Thursday afternoon, erasing earlier gains despite a surprise drop in the producer price index (PPI) for July. The Dow finished up just 27 points, even after strong earnings from Walt Disney (DIS). Meanwhile, the S&P 500 gave back gains to settle slightly below breakeven, while the Nasdaq registered a loss. Elsewhere, Federal Reserve official Mary Daly said it is early to “declare victory” on inflation, and reiterated she expects a 50 basis point hike in September.

The Dow Jones Average (DJI - 33,336.67) rose 27.2 points or 0.08% for the day. Walt Disney (DIS) led the gainers, adding 4.7%. Johnson & Johnson (JNJ) paced the laggards, falling 2.1%.

The S&P 500 Index (SPX - 4,207.27) shed 3 points or 0.07% for the day. Meanwhile, the Nasdaq Composite (IXIC - 12,779.91) lost 74.9 points, or 0.6% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 20.20) added 0.5 points or 2.3% for the day.

OIL PRICES MOVE HIGHER AMID EUROPEAN HEATWAVES

Oil prices were higher on Thursday, after heatwaves in Europe and lower natural-gas supplies prompted the International Energy Agency (IEA) to raise its forecast for global oil-demand growth. September-dated crude added $2.41, or 2.6%, to settle at $94.34 per barrel for the day.

Meanwhile, gold prices settled lower for the first time in roughly one week. More economic data pointing to cooling inflation in the U.S. had traders rotating out of the safe-haven commodity and into other assets. In turn, December-dated gold dropped $6.50, or 0.4%, to close at $1,807.20 an ounce.

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