Stocks rose higher Wednesday as more encouraging U.S. inflation data continued to build up investor momentum towards potential interest rates cuts from the Federal Reserve. The Dow Jones Industrial Average climbed over 240 points, while the S&P 500 Index advanced 0.4% and the Nasdaq Composite closed above the flatline.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Moving Markets:
Consumer Prices rose in-line with economist expectations in July, the U.S. Bureau of Labor Statistics reported Wednesday, boosting market confidence that the central bank will deliver a rate cut in September.
The consumer price index (CPI) increased 0.2% on the month and 2.9% year-over-year, matching Dow Jones estimates for readings of 0.2% and 3%, respectively. Headline inflation rose 3% annually in June. Excluding food and energy prices, core CPI rose 0.2% on the month and 3.2% annually, also matching expectations.
The headline annual rates was the lowest since March 2021, while the year-over-year core rate was at its lowest level since April 2021, according to the report.
In Single-Stock News:
Alphabet
The report, citing people familiar with the matter, says the U.S. Justice Department will most likely push for Alphabet to divest from Google's Chrome browser and Android operating system if it rules to break up the company.
Kellanova
"The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers," Kellanova CEO Steve Cahillane said in a statement. "We are excited for Kellanova's next chapter as part of Mars, which will bring together both companies' world-class talent and capabilities and our shared commitment to helping our communities thrive."
On the Earnings Front:
Flutter Entertainment
DraftKings issued the following statement after Flutter's results: "We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge."
Flutter now expects full-year core profit of $680 million to $800 million, compared to its previous guidance range of $635 million to $785 million issued in March and last year's core profit of $167 million.
For Thursday:
Market participants will turn their attention towards U.S. retail sales for July, alongside earnings reports from companies including Cisco Systems