2023-08-10 21:28:32
US Stocks Journal｜Inflation lower than expected, Dow slightly up 50 points
The U.S. stock market first rose and then fell back. The Dow rose up to 400 points and closed up 53 points. Inflation data was lower than expected, but Fed officials still said that they still have to work hard to suppress inflation. However, market expectations for a rate hike in September have fallen further.
U.S. stocks and foreign currency real-time quotes Multi-national news
August 10th (Thursday) Market Conditions
l The Dow Jones Industrial Average rose 52.79 points, or 0.15%, to 35,176.15 points.
l The S&P 500 rose 1.12 points, or 0.03%, to 4,468.83.
l Nasdaq rose 15.97 points, or 0.12%, to 13,737.99 points.
l New York September crude oil closed at $82.82 a barrel, down $1.58 or 1.87%.
l New York gold futures for October delivery closed at US$1,930.0 an ounce, down US$1.5 or 0.08%.
l The US 10-year Treasury yield closed at 4.080%, up 6.8 basis points.
Market focus on CPI data. According to data released by the U.S. Bureau of Labor Statistics on Thursday, the overall CPI in the United States rose by 3.2% year-on-year in July, up from 3% last week, the first acceleration since June 2022, but lower than the expected 3.3%. Excluding food and energy prices, core CPI rose 4.7% year-on-year in July, 0.1 percentage points lower than expected and last month.
However, Federal Reserve officials and San Francisco Fed President Daly expressed caution, saying that the CPI data “basically in line with expectations, which is good news, but we can’t say we have won. There is still more work to be done, and the Fed is firmly committed to keeping the inflation rate down.” down to the 2 percent target.” After her speech, stocks erased early gains and briefly turned lower.
Jane Foley, head of foreign exchange strategy at Rabobank, pointed out that “although the market believes that the consumer price index has been controlled, there are still many things to be vigilant regarding.” She pointed out that the recent volatility in the US Treasury market and rising energy costs may also affect inflation , and lead to continued interest rate hikes.
However, market expectations for a rate hike in September have cooled further. According to a survey conducted before the release of the CPI data, the market expects a 13% chance of the Fed raising interest rates at its September meeting and a 35% chance of raising interest rates in November. Those numbers fell to 7.5% and 27%, respectively, following the CPI data was released.
More than 90 percent of the S&P 500 have reported earnings, and regarding five out of four have beaten Wall Street expectations, according to Factset data.
Disney, which announced its results following the market closed on Wednesday, performed better than expected. In addition, it announced that the ad-free version of Disney+ will increase the price. On Thursday, it rose 4.88%, becoming the largest gainer in the Dow. The performance of Wynn Resorts was better than expected, and the stock price rose 2.63%.
WeWork, which fell sharply on Wednesday when it expressed doubts regarding its operating prospects, rose sharply on Thursday, rising as much as 150% at one point, and still rose 43% at the close.
In terms of data, the number of new claims for unemployment assistance in the United States increased by 21,000 last week to 248,000, more than market expectations; the 4-week average of new claims for unemployment assistance increased by more than 2,700.
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