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U.S. stocks closed higher on Tuesday as investors waited for key inflation data to be released later in the week and also showed optimism ahead of the start of second-quarter earnings season. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.9% or 317.02 points to finish at 34,261.42 points, recording its biggest daily jump since Jun 15.
The S&P 500 climbed 0.7% or 29.73 points to close at 4,439.26 points. Industrials, energy, utilities, communication services and real estate stocks were the biggest gainers.
The Industrials Select Sector SPDR (XLI) gained 1.2%. The Energy Select Sector SPDR (XLE) rose 2.2%. The Communication Services Select Sector SPDR (XLC) and Utilities Select Sector SPDR (XLU) added 1.7% and 1.2%, respectively.
The Real Estate Select Sector SPDR (XLRE) gained 1.1%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 0.6% or 75.22 points to end at 13,760.70 points.
The fear-gauge CBOE Volatility Index (VIX) was down 1.53% to 14.84. Advancers outnumbered decliners on the NYSE by a 3.65-to-1 ratio. On Nasdaq, a 1.82-to-1 ratio favored advancing issues. A total of 9.97 billion shares were traded on Tuesday, lower than the last 20-session average of 11.1 billion.
Investors Await CPI Data
Stocks closed higher for the second straight session on Tuesday as investors showed optimism ahead of the release of the all-important inflation data. Also, treasury yields fell after rates pulled back further on Monday. The 10-year Treasury Yield fell to 3.980% after falling 2.6 basis points.
The Consumer Price Index (CPI) report for June will be out on Wednesday and investors are now hoping for an impressive reading. Economists expect headline annual inflation to decline to 3.1% in June. However, core annual inflation is expected to come in higher at 5%. The CPI report will be followed by the Producer Price Index (PPI) report on Thursday. The reading will give a clearer picture to the investors about the Fed’s future course of action.
The Fed has already said that two more interest rate hikes will be required this year. Investors are now expecting the first 25 basis point interest rate hike to come into effect in July.
Investors are also waiting for the second-quarter earnings season which goes underway this week. Major banks like JPMorgan Chase ((JPM - Free Report) ), Citigroup ((C - Free Report) ) and Wells Fargo ((WFC - Free Report) ) are scheduled to report their quarterly results later this week.
No major economic data was released on Tuesday.
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Stock Market News for Jul 12, 2023
U.S. stocks closed higher on Tuesday as investors waited for key inflation data to be released later in the week and also showed optimism ahead of the start of second-quarter earnings season. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.9% or 317.02 points to finish at 34,261.42 points, recording its biggest daily jump since Jun 15.
The S&P 500 climbed 0.7% or 29.73 points to close at 4,439.26 points. Industrials, energy, utilities, communication services and real estate stocks were the biggest gainers.
The Industrials Select Sector SPDR (XLI) gained 1.2%. The Energy Select Sector SPDR (XLE) rose 2.2%. The Communication Services Select Sector SPDR (XLC) and Utilities Select Sector SPDR (XLU) added 1.7% and 1.2%, respectively.
The Real Estate Select Sector SPDR (XLRE) gained 1.1%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 0.6% or 75.22 points to end at 13,760.70 points.
The fear-gauge CBOE Volatility Index (VIX) was down 1.53% to 14.84. Advancers outnumbered decliners on the NYSE by a 3.65-to-1 ratio. On Nasdaq, a 1.82-to-1 ratio favored advancing issues. A total of 9.97 billion shares were traded on Tuesday, lower than the last 20-session average of 11.1 billion.
Investors Await CPI Data
Stocks closed higher for the second straight session on Tuesday as investors showed optimism ahead of the release of the all-important inflation data. Also, treasury yields fell after rates pulled back further on Monday. The 10-year Treasury Yield fell to 3.980% after falling 2.6 basis points.
Tech stocks rose on Tuesday, with shares of Meta Platforms, Inc. ((META - Free Report) ) gaining 1.4% and Salesforce, Inc. ((CRM - Free Report) ) advancing 3.9%. Salesforce has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Consumer Price Index (CPI) report for June will be out on Wednesday and investors are now hoping for an impressive reading. Economists expect headline annual inflation to decline to 3.1% in June. However, core annual inflation is expected to come in higher at 5%.
The CPI report will be followed by the Producer Price Index (PPI) report on Thursday. The reading will give a clearer picture to the investors about the Fed’s future course of action.
The Fed has already said that two more interest rate hikes will be required this year. Investors are now expecting the first 25 basis point interest rate hike to come into effect in July.
Investors are also waiting for the second-quarter earnings season which goes underway this week. Major banks like JPMorgan Chase ((JPM - Free Report) ), Citigroup ((C - Free Report) ) and Wells Fargo ((WFC - Free Report) ) are scheduled to report their quarterly results later this week.
No major economic data was released on Tuesday.