Live Markets: U.S. stocks rise as inflation read points to rate cuts
26/07/2024 15:32
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Main U.S. equity indexes rally; small caps outperform
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Industrials lead S&P 500 sector gainers; Energy sole loser
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Euro STOXX 600 index up ~0.7%
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Dollar ~flat; gold up ~1%; bitcoin up >3%; crude off >2%
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U.S. 10-Year Treasury yield falls to ~4.20%
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U.S. STOCKS RISE AS INFLATION READ POINTS TO RATE CUTS
Wall Street's three major indexes are higher early on Friday
after June data showed moderate price increases, underscoring an
improving inflation environment and fuelling optimism the
Federal Reserve can begin interest rate cuts in September.
There was also some boost from positive earnings news with
the second-quarter reporting season in full swing.
The personal consumption expenditures (PCE) price index
nudged up 0.1% last month after being unchanged in May, the
Commerce Department's Bureau of Economic Analysis said on
Friday. In the 12 months through June, the PCE price index
climbed 2.5% after rising 2.6% in May.
“Overall, it’s been a good week for the Fed. The economy
appears to be on solid ground, and PCE inflation essentially
remained steady. But a rate cut next week remains a longshot.
And while there’s plenty of time for the economic picture to
change before the September FOMC meeting, the numbers have been
trending in the Fed’s direction,” said Chris Larkin, head of
trading and investing at E*Trade from Morgan Stanley, New York.
On the earnings front, shares of 3M MMM.N are up 15.8%
after the industrial conglomerate raised the lower end of its
annual adjusted profit forecast as it eyes benefits from
restructuring measures and increasing demand for electronics.
Shares in home flooring manufacturer Mohawk Industries
MHK.N are up 15% after it reported a second-quarter profit
above Wall Street estimates late on Thursday due to cost-cutting
initiatives.
Other companies whose shares are climbing after their
earnings reports include Weyerhaeuser WY.N , up 3%, and Abbvie
ABBV.K , up 1.7%.
Nearly all the S&P 500's 11 major industry sectors are
gaining with industrials .SPLRCI leading the pack. Energy
.SPNY is the sole loser.
Once again small caps are outperforming with the Russell
2000 .RUT up 1.5% vs the S&P 500's 1.1% gain.
Here is your early snapshot at 10:20 a.m ET (1420 GMT):
(Sinéad Carew, Johann M Cherian)
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FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
U.S. STOCK FUTURES PARE GAINS SLIGHTLY AFTER PCE - CLICK
HERE
DON'T CALL IT A ROTATION - CLICK HERE
MARKETS REACTING TO RECESSION THAT ISN'T THERE - CLICK HERE
EARNINGS HELP EUROPEAN INDEXES - CLICK HERE
BUSY BUSY - CLICK HERE
STOCKS ON FIRMER FOOTING AFTER WILD WEEK - CLICK HERE
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Wall Street indexes rise https://tmsnrt.rs/4cX0ujQ
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