Stocks moved higher Tuesday morning as investors digested better-than-expected inflation numbers, which kicked off several days of key economic reports that could provide clues on when the Federal Reserve will start cutting interest rates.
The S&P 500 and Nasdaq Composite were up 0.8% and 1.4%, respectively, while the Dow Jones Industrial Average gained 0.3%. On Monday, the S&P 500 and Nasdaq closed slightly higher, extending their winning streaks to three straight sessions, as markets stabilized following a volatile stretch sparked by mounting concerns about the health of the U.S. economy.
The Producer Price Index report released early Tuesday showed further progress on wholesale inflation, which is often viewed as a leading indicator for consumer prices. The consumer price inflation report comes on Wednesday, followed by data on retail sales and housing later in the week. Several Fed officials are also slated to speak in the coming days.
The economic data is being closely monitored by the Fed as it considers when to start cutting rates that are at a two-decade high. Fed Chair Jerome Powell has said the central bank could start cutting its benchmark lending rate as soon as September if inflation continues to moderate.
The yield on 10-year Treasurys was at 3.87%, slipping below 3.9% Tuesday for the first time since last Wednesday. The yield had dropped below 3.7% early last week after a weaker-than-expected July jobs report led market participants to believe the Fed would need to cut rates swiftly and deeply address economic weakness. The concerns eased later in the week when weekly jobless claims numbers were more benign,
Starbucks (SBUX) was the big mover in early trading, soaring more than 20% after the company announced that Chipotle (CMG) Chief Executive Officer Brian Niccol would be joining the coffee chain as CEO. Chipotle shares tumbled more than 10%.
Shares of large-cap tech stock were gaining ground in early trading, with Nvidia (NVDA) up 4% while Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG) and Meta Platforms (META) were also on the rise.
Home Depot (HD), a Dow component, was up slightly after reporting earnings. The home improvement retailer said its 2024 comparable sales would decline more than it had previously forecast, offsetting second-quarter sales and profit that topped expectations.
Gold futures were up slightly at around $2,510 per ounce, nearing fresh record highs, while bitcoin was holding steady at just above $59,000.
Source: https://www.investopedia.com/dow-jones-today-08132024-8694394
