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The S&P 500 closed above 5,500 for the first time as Fed Chair Jerome Powell said the central bank had made progress on inflation. The S&P 500 and the tech-heavy Nasdaq Composite closed at record highs, with Tesla soaring 10% after sales fell less than expected. The Dow Jones Industrial Average added 162 points.
The S&P 500 closed above 5,500 for the first time as Fed Chair Jerome Powell said the central bank had made progress on inflation. The S&P 500 and the tech-heavy Nasdaq Composite closed at record highs, with Tesla soaring 10% after sales fell less than expected. The Dow Jones Industrial Average added 162 points.
The yield on the 10-year Treasury slipped as Powell indicated that the bank needs more time before cutting rates. U.S. oil prices dropped back from two-month highs.
Tesla soars
Tesla’s shares surged 10.2% after the EV maker beat second-quarter production and delivery expectations. However, total deliveries still fell 4.8% year-over-year, though they rose 14.8% from the first quarter.
Tesla’s shares surged 10.2% after the EV maker beat second-quarter production and delivery expectations. However, total deliveries still fell 4.8% year-over-year, though they rose 14.8% from the first quarter.
The decline comes as Tesla faces increased competition, particularly in China, and an aging vehicle lineup. To stimulate sales, Tesla has offered various discounts and incentives, such as zero-interest loans for Model 3 and Model Y purchases in China.
Inflation progress
Powell said the central bank had made “quite a bit of progress” on inflation over the past year but said he wants to see more before being confident enough to start cutting interest rates. “The last [inflation] reading and the one before it to a lesser extent, suggest that we are getting back on the disinflationary path,” Powell said at a central banking forum in Sintra, Portugal. “We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”
Powell said the central bank had made “quite a bit of progress” on inflation over the past year but said he wants to see more before being confident enough to start cutting interest rates. “The last [inflation] reading and the one before it to a lesser extent, suggest that we are getting back on the disinflationary path,” Powell said at a central banking forum in Sintra, Portugal. “We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”
Alzheimer drug approval
The FDA has approved Eli Lilly’s Alzheimer’s drug, donanemab, expanding treatment options for the nearly 7 million Americans with the disease. Eli Lilly has faced obstacles in its path to market. The FDA rejected the drug’s approval last year due to insufficient data, then surprisingly delayed it again in March. Donanemab will now compete with Biogen and Japanese partner Eisai’s Leqembi, which gained approval last year.
The FDA has approved Eli Lilly’s Alzheimer’s drug, donanemab, expanding treatment options for the nearly 7 million Americans with the disease. Eli Lilly has faced obstacles in its path to market. The FDA rejected the drug’s approval last year due to insufficient data, then surprisingly delayed it again in March. Donanemab will now compete with Biogen and Japanese partner Eisai’s Leqembi, which gained approval last year.
Paramount bid?
Shares of Paramount Global popped 9% in extended trading after news of a potential deal between David Ellison’s Skydance and National Amusements, Paramount’s controlling shareholder. This preliminary agreement could give Skydance control of Paramount, marking a revival of a previously failed deal. While specific terms remain unclear, the previous deal involved a $2 billion payout to National Amusement’s controlling shareholder Shari Redstone, $4.5 billion for Paramount’s controlling shares and $1.5 billion cash for Paramount’s balance sheet.
Shares of Paramount Global popped 9% in extended trading after news of a potential deal between David Ellison’s Skydance and National Amusements, Paramount’s controlling shareholder. This preliminary agreement could give Skydance control of Paramount, marking a revival of a previously failed deal. While specific terms remain unclear, the previous deal involved a $2 billion payout to National Amusement’s controlling shareholder Shari Redstone, $4.5 billion for Paramount’s controlling shares and $1.5 billion cash for Paramount’s balance sheet.
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Some famous words of Buffett. I hope it's useful to you. : )
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areecep OP : Well, Lazard’s chief strategist Ronald Temple expects the Fed to cut rates three times by the end of this year — that’s more than the market is currently factoring in.