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U.S. stocks closed higher on Friday as investors assessed the July inflation data and adjusted their expectations for a potential rate cut. The Nasdaq, the Dow and the S&P 500 all closed in positive territory. Wall Street was closed on Monday to observe Labor Day. However, the last month was a strong one for Wall Street.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% to close at 41,563.08. Notably, 26 components of the 30-stock index ended in negative territory, while four ended in positive zone.
The tech-heavy Nasdaq Composite climbed 1.1%, to close at 17,713.62. The S&P 500 gained 1%, to close at 5,648.40. Eight of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 1.5%, 1.3% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) slid 4.2% to 15.00. A total of 11.2 billion shares were traded on Friday, lower than the last 20-session average of 11.4 billion. The S&P 500 posted 79 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 84 new highs and 77 new lows.
Inflation Ticks Up in July, Supporting Likely Fed Rate Cut
Inflation in the United States showed a slight increase in July, with the personal consumption expenditures (PCE) price index rising 0.2% for the month and 2.5% year over year. The core PCE index, which excludes volatile food and energy prices, also rose by 0.2% monthly and 2.6% annually.
Per BEA data, personal income increased by $75.1 billion or 0.3% in July. Disposable personal income increased $54.8 billion or 0.3%. Personal spending increased 0.5%. These inflation statistics indicate a sense of stability and support the anticipation that the Federal Reserve will proceed with a rate reduction in September by a modest 25 basis points rather than a more substantial 50-basis-point decrease.
Mixed Earnings
Lululemon Athletica Inc. (LULU - Free Report) reported second-quarter 2024 adjusted earnings of $3.15 per share, outpacing the Zacks Consensus Estimate of $2.92 per share. The apparel company generated total revenues of $2.37 billion, lagging the Zacks Consensus Estimate of $2.4 billion. Its shares ended 0.2% higher on Friday.
Dell Technologies Inc. (DELL - Free Report) reported second-quarter 2024 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.74 per share. This computer and technology services company generated total revenues of $25.03 billion, beating the Zacks Consensus Estimate of $24.29 billion. Consequently, the shares of Dell Technologies returned 4.3%. Dell Technologies carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Weekly Summary
For the week, the Nasdaq slipped 0.08%, the S&P 500 declined 0.04%, and the Dow edged down 0.09%.
Monthly Roundup
For the month, the S&P 500 gained 2.3%, the Dow rose 1.8%, and the Nasdaq edged up 0.6%.
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Stock Market News for Sep 3, 2024
Market News
U.S. stocks closed higher on Friday as investors assessed the July inflation data and adjusted their expectations for a potential rate cut. The Nasdaq, the Dow and the S&P 500 all closed in positive territory. Wall Street was closed on Monday to observe Labor Day. However, the last month was a strong one for Wall Street.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% to close at 41,563.08. Notably, 26 components of the 30-stock index ended in negative territory, while four ended in positive zone.
The tech-heavy Nasdaq Composite climbed 1.1%, to close at 17,713.62. The S&P 500 gained 1%, to close at 5,648.40. Eight of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 1.5%, 1.3% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) slid 4.2% to 15.00. A total of 11.2 billion shares were traded on Friday, lower than the last 20-session average of 11.4 billion. The S&P 500 posted 79 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 84 new highs and 77 new lows.
Inflation Ticks Up in July, Supporting Likely Fed Rate Cut
Inflation in the United States showed a slight increase in July, with the personal consumption expenditures (PCE) price index rising 0.2% for the month and 2.5% year over year. The core PCE index, which excludes volatile food and energy prices, also rose by 0.2% monthly and 2.6% annually.
Per BEA data, personal income increased by $75.1 billion or 0.3% in July. Disposable personal income increased $54.8 billion or 0.3%. Personal spending increased 0.5%. These inflation statistics indicate a sense of stability and support the anticipation that the Federal Reserve will proceed with a rate reduction in September by a modest 25 basis points rather than a more substantial 50-basis-point decrease.
Mixed Earnings
Lululemon Athletica Inc. (LULU - Free Report) reported second-quarter 2024 adjusted earnings of $3.15 per share, outpacing the Zacks Consensus Estimate of $2.92 per share. The apparel company generated total revenues of $2.37 billion, lagging the Zacks Consensus Estimate of $2.4 billion. Its shares ended 0.2% higher on Friday.
Dell Technologies Inc. (DELL - Free Report) reported second-quarter 2024 adjusted earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.74 per share. This computer and technology services company generated total revenues of $25.03 billion, beating the Zacks Consensus Estimate of $24.29 billion. Consequently, the shares of Dell Technologies returned 4.3%. Dell Technologies carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Weekly Summary
For the week, the Nasdaq slipped 0.08%, the S&P 500 declined 0.04%, and the Dow edged down 0.09%.
Monthly Roundup
For the month, the S&P 500 gained 2.3%, the Dow rose 1.8%, and the Nasdaq edged up 0.6%.