 The S&P 500 lost 49 points. The Dow closed 32 points higher. The annual inflation rate hit 3% in June, according to the Commerce Department's Consumer Price Index. Overall, consumer prices were one-tenth of a percent lower than May, but food and housing costs were still higher. San Francisco Federal Reserve Bank President Mary Daly says there is the data to justify an interest rate cut. Based on data from inflation, unemployment, and the gross domestic product, she suggested there could be two rate cuts before the end of the year.