Index Pull Back Follows Fractionally Lower Inflation, Will Rate Cuts Come Next? | Wall Street Stories
Morning Traders! It is a scorching, humid Thursday here in JC, but our new office is cold and beautiful. The first major company produced earnings that disappointed investors; now we have to wait and see for JPMorgan's earnings on Friday if this is a sign of things to come.
My name is Kevin Travers; here are stories from the moomoo herd on Wall Street Today.
$DAL.US$ fell about 6% after the firm disappointed investors on Thursday morning, issuing weaker-than-expected guidance for the third quarter. Delta's earnings per share of $2.36 and adjusted operating revenue of $15.41 billion fell short of expectations.
$ENPH.US$ was the highest gainer on the S&P 500, up 6% as debt-heavy solar power stocks climbed following hopes that rate cuts would come.
In commodities, Crude Oil Futures pulled back after Wednesday's gain; Bitcoin fell to remain at $57k, while Gold and Silver climbed 1.5% in response to rate cut hopes.
As a general recap, the market was advancing overall while the S&P 500 and Nasdaq pulled back a bit from seven consecutive record sessions. 8200 equities climbed while 2000 declined.
Shortly after 10:30 am EST, the $.SPX.US$ fell 0.24%, the $.DJI.US$ climbed 0.11%, and the $.IXIC.US$ fell back 0.70%
In macroeconomics this week, investors watched comments from the Federal Reserve President Jerome Powell speaking on Capitol Hill, and CPI release on Thursday.
CPI numbers showed a basket of consumer prices in the United States fell for a third straight month to 3.0% in June from 3.3% in May of 2024. Core consumer prices in the US increased by 3.3% in June of 2024 over the same month in the previous year, down from 3.4% in May. Consumer prices fell about 0.1%, leading to hope that the Fed may lower interest rates.
Initial jobless claims also came out, right at the prescribed 222,000 Powell as he spoke of in front of the Senate Tuesday and Wednesday, where he said that was the average job growth for the past six months. Powell said he would like more data supporting rate cuts, but the Fed keeps its options open.
"We know that reducing policy restraint too soon or too much could stall or even reverse the progress we have seen on inflation," Powell said. "In light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face."
Powell pointed to rising unemployment numbers over the past three months as an example of a cooling market. The unemployment rate most recently peaked at 4.1% in June, he said. He said that, compared to two years ago, the labor market had cooled significantly to just above where it sat in 2019 and that inflation was not the Fed's only concern.
He also said the Fed does not need inflation below 2% before cutting rates, just evidence inflation is on its way there. "Reducing policy restraint too late or too little could unduly weaken economic activity and employment," Powell said.
PPI comes out Friday, expected at 0.2% core.
Yesterday, investors were watching Chewy and hoping it would keep going up as a new meme stock.
Mooers, what are you watching today? Comment below and I may feature your comment tomorrow!
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Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office.
Fmr CNBC contributor, reporter/investor/trader
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105535782 : ok
Kevin Travers OP 105535782 : What stocks are you watching today??
72917817 : Stock market fell by 5%
Stock_Drift Kevin Travers OP : $MAXN.US$ $CRKN.US$ $LGVN.US$
On Paris : Good morning
Kevin Travers OP 72917817 : Interesting, where did you get that number?
Kevin Travers OP 72917817 : You are not entirely wrong, the Nasdaq is bombing like 2%, but still, show me where you found that plsss
Kevin Travers OP Stock_Drift : solar stocks flew this morning in part after hopes that interest rate cuts will finally arrive soon and lift companies up that rely on a lot of debt-- apparently solar companies have mortgage-like debt vehicles to help customers install expensive panels, who knew
Laine Ford : no comment