Nasdaq Composite and Dow Jones Gain 400+ Points | Wall Street Today
Stocks closed solidly higher Tuesday, with the $Nasdaq Composite Index (.IXIC.US)$ and $Dow Jones Industrial Average (.DJI.US)$ both adding 400+ points as Wall Street liked Produce Price Index data that pointed to tame U.S. inflation that could open the door to Federal Reserve interest-rate cuts.
The Nasdaq added 407 points (2.4%) to close at 17,187.61, while the DJIA rose 408.63 ticks (1%) to 39,765.64. Meanwhile, the $S&P 500 Index (.SPX.US)$ gained 90.02 points (1.7%) to a 5,434.41 finish.
MACRO
Equities rose after the U.S. Bureau of Labor Statistics reported before the bell that the PPI -- which measures wholesale inflation -- gained only 0.1% in July, less than the 0.2% that economists had forecast. The BLS plans to release the July Consumer Price Index, which measures inflation at the retail level, on Wednesday at 8:30 a.m. ET.
The modest PPI helped reignite hopes that the Federal Reserve will soon cut interest rates, possibly as early as its regularly scheduled Sept. 17-18 meeting. Lower rates historically help stocks by reducing the interest rates that bonds and money-market funds pay.
MOOVERS
Tuesday’s big stock gainers included:
-- $Starbucks (SBUX.US)$, which soared 24.5% on news that the coffee chain is replacing CEO Laxman Narasimhan with Chipotle CEO Brian Niccol. $Chipotle Mexican Grill (CMG.US)$ sank 7.5% on the news.
-- $EchoStar (SATS.US)$, which rebounded 12.6% after several days of losses following release last Friday morning of poorly received quarterly earnings. However, the stock remains 13.1% below where it closed Thursday before the numbers came out.
Decliners of note included:
-- $Tencent Music (TME.US)$, which shed 15.3% on word of declining yearly revenues and fewer mobile monthly active users.
-- $B. Riley Financial (RILY.US)$, which lost 11.4% after falling more than 50% on Monday following suspension of its dividend and word that regulators have subpoenaed its record.
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
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Alen Kok : ok
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Slee49 : Like
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102188459 : Tq
JM investor 70040116 : Agree with you!