Market Wrap: Cisco Plugs In, Powers Up; Prices Flat in July; Paperless Woes Hit Staples; New Apple Headache Emerges

Market wrap-up for August 15th

End of the Day: Dow Jones down 7.4 to 13,164.78; S&P 500 up 1.6 to 1,405.53; Nasdaq up 14.0 to 3,030.93

The following is a brief summary of events moving markets today:

• Inflation on fourth-month flat streak: The U.S. Labor Department reported today that consumer prices remained flat in July, the fourth such month of no growth in the U.S. The data hints that inflation pressures in the U.S. might be contained, at least in the near term.
  
  CPI in July grew 1.4 percent over last year and zero percent from June. Economists were looking for about 0.2 percent of growth.
  
  Excluding more volatile measures of food and energy, core CPI rose just 0.1 percent in July.
  
  Gasoline prices increased for the first time in four months, rising 0.3 percent in the period. Overall, energy costs dropped 0.3 percent and food prices rose 0.1 percent.
  
  For more color on the report, click here.
  
  
• The effects of going paperless mount: Office supply retailer Staples (Nasdaq: SPLS) was slammed Wednesday following its second-quarter 2012 earnings report, showing in-line EPS of 22 cents on light revs, while taking a more cautious stance on 2012. Staples ended up closing about 15 percent down, hitting peers Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX) in the process.
  
  
• Price battle rattles market: China's mounting a pricing battle of epic proportions as slowing growth may have an impact on retail sales. According to the WSJ, big Chinese retailers like Suning Appliance and Gome Electrical as well as e-commerce players Beijing Jingdong and e-Commerce China Dangdang (Nasdaq: DANG) are looking to lure shoppers in the old-fashioned way...discounts.
  
  The chatter sent shares in China lower. Mainly, consumer electronics retailers are most vulnerable, given that they sell similar products. That competition will only intensify as major U.S.-based retailer Wal-Mart (NYSE: WMT) received approval Tuesday to acquire a majority stake in Chinese e-Commerce leader Yihaodian.
  
  
• Switching back into investors' hearts: Cisco Systems (Nasdaq: CSCO) saw some late action after reporting a top- and bottom-line fourth-quarter beat Wednesday. Adjusted EPS of 47 cents and sales of $11.69 billion compared with Street expectations calling for EPS of 46 cents and sales of $11.61 billion. Cisco also boosted its quarterly payout to 14 cents per share, from eight cents prior.
  
  For more color on the quarter, click here.
  
  
• Take that, Telenor!: In what looks to be shaping up as a vigorous control battle, Mikhail Fridman's Alfa Group boosted its stake in Vimpelcom (NYSE: VIP) today, sinking another $3.2 billion for another 15.5 percent interest. The investment brings Alfa Group's position to 40.5 percent.
  
  Reports have other major holder Telenor, with a current stake at 38.5 percent, potentially exercising an option which would make it the largest holder once again, with a 43 percent share. No comment from the firm on whether they would move forward with option or not.
  
  VimpelCom is the Amsterdam-based telecom giant, which boasts a subscription based of over 200 million.
  
  
• Are you a styler, or toucher?: Samsung introduced its newest tablet device, the Galaxy Note 10.1, today, in hopes to steal more market share away from Apple (Nasdaq: AAPL) and other rivals. Initial specs for the device look impressive, with the S Pen and multiscreen display the two new key features of the device. So, if you're an artist (graphics or traditional oil and paper) and don't like having to draw with your finger all the time, the Note 10.1 might be for you.
  
  Pricing is similar to the iPad, with a 16-GB Note 10.1 starting at $499.

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