We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street closed higher on Thursday as market participants digested inflation data, which fueled expectations of potential interest rate cuts by the Federal Reserve later this year. The S&P 500 and the Nasdaq ended the last trading session in the red, while the Dow finished in the green zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 32.39 points to close at 39,753.75. Notably, 19 components of the 30-stock index ended in positive territory, while 11 ended in negative zone. The major gainer of the Dow was The Home Depot, Inc. (HD - Free Report) . The stock price of this retailer rose 2.8%. The Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The tech-heavy Nasdaq Composite declined 2% to close at 18,283.41.
The S&P 500 fell 0.9% to close at 5,584.54. Four of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC), and the Consumer Discretionary Select Sector SPDR (XLY) fell 2.5%, 1.4% and 1.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 1.2% to 12.51. A total of 12.6 billion shares were traded on Thursday, higher than the last 20-session average of 11.5 billion. The S&P 500 posted 51 new 52-week highs and two new lows; the Nasdaq Composite recorded 141 new highs and 50 new lows.
June CPI Report Signals Potential Fed Rate Cut
The monthly inflation rate dipped in June for the first time in more than four years, providing further cover for the Federal Reserve to start lowering interest rates later this year.
Per the U.S. Bureau of Labor Statistics, CPI decreased 0.1% in June on a seasonally adjusted basis, after being unchanged in May. The index increased by 3% on a year-over-year basis. Alongside, the index for all items less food and energy, also known as core CPI, rose 0.1% in June, slightly lower than the 0.2% increase reported the previous month and up 3.3% year over year. This annual increase in the core rate was the smallest increase since April 2021, signifying a potential slowdown in underlying inflationary pressures.
The central bank has held its benchmark borrowing rate in a range between 5.25-5.50%, even as inflation has fallen sharply over the past few years. The CME Group’s FedWatch tool now indicates around 93% likelihood of interest rate cuts by the Fed starting in September.
Economic Data
The Labor Department reported that jobless claims totaled 222,000 for the week ending Jul 6, decreasing 17,000 from the previous week’s revised level of 239,000. The four-week moving average was 233,500, a decrease of 5,250 from the previous week’s revised average of 238,750.
Continuing claims came in at 1,852,000, a decrease of 4,000 from the previous week’s revised level of 1,856,000. The 4-week moving average was 1,840,250, an increase of 9,750 from the previous week's revised average of 1,830,500.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for July 12, 2024
Market News
Wall Street closed higher on Thursday as market participants digested inflation data, which fueled expectations of potential interest rate cuts by the Federal Reserve later this year. The S&P 500 and the Nasdaq ended the last trading session in the red, while the Dow finished in the green zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.1% or 32.39 points to close at 39,753.75. Notably, 19 components of the 30-stock index ended in positive territory, while 11 ended in negative zone. The major gainer of the Dow was The Home Depot, Inc. (HD - Free Report) . The stock price of this retailer rose 2.8%. The Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
The tech-heavy Nasdaq Composite declined 2% to close at 18,283.41.
The S&P 500 fell 0.9% to close at 5,584.54. Four of the 11 broad sectors of the benchmark index closed in the red. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC), and the Consumer Discretionary Select Sector SPDR (XLY) fell 2.5%, 1.4% and 1.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 1.2% to 12.51. A total of 12.6 billion shares were traded on Thursday, higher than the last 20-session average of 11.5 billion. The S&P 500 posted 51 new 52-week highs and two new lows; the Nasdaq Composite recorded 141 new highs and 50 new lows.
June CPI Report Signals Potential Fed Rate Cut
The monthly inflation rate dipped in June for the first time in more than four years, providing further cover for the Federal Reserve to start lowering interest rates later this year.
Per the U.S. Bureau of Labor Statistics, CPI decreased 0.1% in June on a seasonally adjusted basis, after being unchanged in May. The index increased by 3% on a year-over-year basis. Alongside, the index for all items less food and energy, also known as core CPI, rose 0.1% in June, slightly lower than the 0.2% increase reported the previous month and up 3.3% year over year. This annual increase in the core rate was the smallest increase since April 2021, signifying a potential slowdown in underlying inflationary pressures.
The central bank has held its benchmark borrowing rate in a range between 5.25-5.50%, even as inflation has fallen sharply over the past few years. The CME Group’s FedWatch tool now indicates around 93% likelihood of interest rate cuts by the Fed starting in September.
Economic Data
The Labor Department reported that jobless claims totaled 222,000 for the week ending Jul 6, decreasing 17,000 from the previous week’s revised level of 239,000. The four-week moving average was 233,500, a decrease of 5,250 from the previous week’s revised average of 238,750.
Continuing claims came in at 1,852,000, a decrease of 4,000 from the previous week’s revised level of 1,856,000. The 4-week moving average was 1,840,250, an increase of 9,750 from the previous week's revised average of 1,830,500.