The stock market continued its rally yesterday after initial jobless claims came in broadly in line with expectations this morning and wholesale inflation came in better than forecast. The Dow Jones Industrial Average rose another 200 points, or 0.7%, extending yesterday’s rise of over 500 points.
The S&P 500 was up 0.7% and the Nasdaq Composite was up 0.8%. Small-cap Russell 2000 rose 0.9%. Volume rose on the Nasdaq and fell on the NYSE compared to the same point on Wednesday.
The yield on 10-year government bonds remained little changed at 2.8%. Crude oil rose and traded at $93.28 a barrel.
The Innovator IBD 50 ETF (FFTY) is up 1.1%. IBD 50 Oil Exploration and Production Company Matador Resources (MTDR) is breaking out of a cup and handle base with a buy point of 58.68.
Including electricity suppliers PPL (PPL) breaks out of a cup and handle base and is in the buy zone from a buy point of 29.44. Western Central Stream (WES) is above its buy point of 27.80 on a cup-and-handle basis.
Economic indicators move Dow Jones
Initial jobless claims rose slightly to 262,000, slightly above estimates of 260,000.
The Producer Price Index, which measures the monthly change in the price of goods and services received by manufacturers, fell 0.5% mom in July. Economists were expecting a 0.3% increase from the previous month. The PPI rose 9.8% year over year, also less than expected.
According to Jamie Cox, managing partner of Harris Financial Group, today’s economic numbers show that “a soft landing is in sight”. However, Comerica Wealth Management chief investment officer John Lynch warns that the market is headed for resistance as the S&P 500 remains above 4200.
Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, also notes that the competing narratives of a slowdown in inflation and a possible recession need to be closely monitored.
Lower consumer inflation in July of 8.5% boosted confidence in the stock market yesterday, leading to a broad rally. Tomorrow’s payrolls and Michigan consumer sentiment data will tell us more about the pace of consumer spending. Private consumer spending even rose to 6.8% in June – the month in which inflation also peaked. The Michigan index also showed a slight improvement in the consumer outlook to 51.5 from June’s record low of 50.
Overview of today’s US stock market
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Last Updated: 10:14am ET 8/11/2022
Dow Jones Leader proposes views
shares of Disney (DIS) rose after gaining late on Wednesday. Subscription growth for the company’s streaming platform, Disney+, rose 14.4 million, even as theme park revenue picked up. Earnings of $1.09 a share on sales of $21.5 billion beat estimates of 98 cents a share on sales of $20.99 billion.
The Dow Jones leader plans to increase prices on the Disney+ streaming service by 38% while increasing prices on Hulu and ESPN+. The company’s 221 million subscriber base is now larger than that of Netflix (NFLX). It has a goal of 260 million subscribers by 2024.
The stock was up nearly 8% in a big way Thursday morning.
Elsewhere shares of cardinal health (CAH) climbed to new highs after the company missed earnings expectations. Earnings of 50 cents a share were well below guidance of $1.17 a share. Revenue rose 11% to $47.1 billion. The stock reversed higher and surpassed a cup basis with a buy point of 64.63.
result on deck
Enlightenment (ILMN) is on deck with gains after the market close. The maker of genotyping and array-based solutions beat estimates with earnings of $1.07 per share last quarter, up 17 cents from estimates. The shares have crossed their 50-day moving average.
Rivian‘s (RIVN) results, due after market close today, will shed further light on the EV startup scene. The company, which produced the first electric pickup truck, the R1T, in 2021, faced supply chain issues that delayed delivery times. The shares trade along a 50-day moving average.
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