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Market Recap: U.S. stocks finish lower Tuesday after hot CPI data

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Moomoo Recap US wrote a column · Jul 13, 2021 19:14
Market Recap: U.S. stocks finish lower Tuesday after hot CPI data
Hey moomooers, Here is the latest Market Recap for you.
CPI data released Tuesday showed the cost of living jumped in June by the largest amount since 2008.
Stocks to watch: $Boeing (BA.US)$, $PepsiCo (PEP.US)$, $Electronic Arts Inc (EA.US)$, $Goldman Sachs (GS.US)$, $Okta (OKTA.US)$ and so on.
Market Snapshot
U.S. stocks finished lower Tuesday, after investors sifted through hotter-than-expected U.S. consumer-price index data and parsed quarterly results from some of the country's biggest banks, including $JPMorgan (JPM.US)$ and $Goldman Sachs (GS.US)$.
Market Recap: U.S. stocks finish lower Tuesday after hot CPI data
The $Dow Jones Industrial Average (.DJI.US)$ closed the regular trading session down 107 points, or 0.3%. The decline came a day after the Dow closed at a record. The S&P and Nasdaq Composite hit all-time highs on Tuesday before giving back those gains and ultimately closing lower. The $S&P 500 Index (.SPX.US)$ dipped 0.35%, while the $Nasdaq Composite Index (.IXIC.US)$ shed 0.38%, each posting their first negative session in three.
What to drove the market?
Stocks pulled back Tuesday as investors digested data showing a surge in inflation, and following the results of an auction for 30-year Treasury notes that was "not well received," according to Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
"In an environment where the Fed is willing to tolerate inflation of 2%," investors were probably asking why they should accept a 30-year bond rate below that level, Samana said in an interview Tuesday. The stock market began fluctuating after the auction, adjusting to the resulting rise in 30-year Treasury yields, he said.
CPI data released Tuesday showed the cost of living jumped in June by the largest amount since 2008. The U.S. consumer-price index rose 0.9% in June. The core reading, which strips out volatile food and energy costs, also rose 0.9%. Both measures were expected to show a 0.5% rise.
What stocks to watch
$Boeing (BA.US)$ — Shares of Boeing fell more than 4.23%. The plane maker cut production of its 787 Dreamliners after a new flaw was detected on some of the jets. Boeing also cut its delivery target for the planes.

$PepsiCo (PEP.US)$ – Shares of the snack and beverage company advanced more than 2% to a new all-time high after the company beat top and bottom line estimates during the second quarter. Pepsi earned an adjusted $1.72 per share on $19.22 billion in revenue, compared to Wall Street’s expectations of $1.53 per share on $17.96 billion. The company also raised its forecast as restaurant demand returns.

$Electronic Arts Inc (EA.US)$ — The video game publisher rose 1.32% after BMO Capital Markets upgraded EA to outperform from market perform. The investment firm said in a note that the market appeared to be underestimating the strength of the video game market amid the economic reopening and that some of EA's games show upside potential in the upcoming year.

$Goldman Sachs (GS.US)$ — Shares of the New York-based bank fell more than 1% even after a stellar quarterly earnings report. Goldman's second-quarter earnings and revenue blew past Wall Street's expectations as its investment banking segment posted its second-highest revenue quarter ever, behind the first quarter of 2021, amid a booming IPO market. Since the stock is already up more than 40% this year, much of the good news might have been priced in.

$Okta (OKTA.US)$ — Okta's share price rallied over 1.44% after Goldman Sachs initiated coverage of the stock with a buy rating. The Wall Street firm Goldman said the cloud and identity management company that it was well positioned in the shift to digital.

$Roblox (RBLX.US)$ — Shares of the video game company dropped more than 2% after Benchmark initiated coverage of the stock with a sell rating. The Wall Street firm cited concerns about the pull forward in the stock during the pandemic.

$JPMorgan (JPM.US)$ — The bank's share price fell about 1.5% despite JPMorgan reporting a quarterly profit of $3.78 per share for the second quarter, beating the $3.21 consensus estimate. Revenue also topped the Street’s forecasts.

$First Solar (FSLR.US)$ — Shares of the solar panel company dipped less than 1% on Tuesday after Citi downgraded First Solar to neutral from buy. The firm said in a note to clients that First Solar's stock had priced in a lot of good news for the company, including the potential for green energy spending in an infrastructure deal in Congress. The stock had jumped nearly 20% in the past three months.

$Conagra Brands (CAG.US)$ — Shares of the food company slumped more than 4% despite beating on the top and bottom lines of its quarterly results. Conagra reported earnings of 54 cents per share on revenue of $2.74 billion. Analysts expected earnings of 52 cents per share on revenue of $2.71 billion, according to Refinitiv.
Source: Dow Jones, CNBC
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