US STOCKS-S&P 500, Nasdaq end sharply higher on soft inflation data, eyes on earnings

Rent the Runway

11/04/2024 21:15

* 
      CarMax drops after Q4 results miss
    

        * 
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        * 
      March producer prices at 2.1% YoY vs 2.2% est
    

        * 
      Indexes: Dow ~flat, S&P up 0.74%, Nasdaq gains 1.68%
    

  
 (Updates to 16:08 EDT)
    By Stephen Culp
       NEW YORK, April 11 (Reuters) - U.S. stocks closed higher
on Thursday, with tech-related momentum stocks leading the
charge, as fresh economic data rekindled hopes that inflation
remains in a cooling trend.
    Interest rate-sensitive megacaps gave the tech-heavy Nasdaq
a decisive edge. The S&P 500 also closed in positive territory,
while the Dow ended essentially unchanged. 
    The Producer Prices index (PPI) came in softer than
expected, supporting the narrative that price growth is still
cooling.
    "The data this morning was mildly more supportive of sort of
a benign 'soft landing' outcome than the data yesterday," said
Brian Nick, senior investment strategist at Macro Institute. "I
guess it feels like a natural kind of snapback from, what was
potentially an overreaction yesterday."
    On Wednesday, hotter-than-expected CPI data sent stocks
sharply lower and benchmark Treasury yields to their highest
level since November. The report doused hopes that the central
bank could implement as many as three rate cuts before year-end,
possibly starting as soon as its June policy meeting.
    "There’s a suggestion that the inflation numbers the Fed
really cares about - the PCE numbers - aren't going to be quite
as dire as CPI," Nick added. "And the parts of the market that
were most punished yesterday are having a bit of a comeback
today."
    While the PPI data was more encouraging, the data did
indicate that inflation's journey down toward the central bank's
annual 2% target might be too meandering for the Fed. 
    New York Fed President John Williams said "there's no clear
need to adjust monetary policy in the very near term." 
    Richmond Fed President Thomas Barkin said the central bank
is not yet confident pricing pressures will continue to ease.
    "Investors are starting to absorb the possibility that maybe
inflation could linger just a little bit longer and the Fed's
going to continue to remain patient, which is their big word
right now," said Joseph Sroka, chief investment officer at
NovaPoint in Atlanta.
    Investors now switch their focus to first-quarter earnings
season, with results from three major U.S. banks - JPMorgan
Chase & Co  JPM.N , Citigroup Inc  C.N , and Wells Fargo & Co
 WFC.N  - due Friday morning.
    The Dow Jones Industrial Average  .DJI  fell 2.43 points, or
0.01%, to 38,459.08, the S&P 500  .SPX  gained 38.42 points, or
0.74%, to 5,199.06 and the Nasdaq Composite  .IXIC  added 271.84
points, or 1.68%, to 16,442.20.
        Of the 11 major sectors in the S&P 500, tech  .SPLRCT 
was out front, while financial shares  .SPSY  were the laggards.
  
        The FANG+ index of megacap momentum stocks  .NYFANG  was
a clear outperformer, gaining 
    2.6
    %.
  
        
    CarMax
      KMX.N  slid 
    9.2
    % after the pre-owned vehicles retailer missed analysts'
estimates for fourth-quarter results and said it might not meet
its long-term vehicle sales target.
  
        
    Globe Life
      GL.N  tumbled 
    53.1
    % after Fuzzy Panda Research disclosed a short position in
the company, alleging multiple instances of insurance fraud.
  
        
    Rent the Runway
      RENT.O  skyrocketed by 
    161.9
    % after the apparel rental company said it was betting on
artificial intelligence to power its current year growth.
  
        Biotech firm 
    Alpine Immune Sciences
      ALPN.O  is to be acquired by Vertex Pharmaceuticals
 VRTX.O  for about $4.9 billion in cash, both companies said.
Alpine surged 
    36.9
    %.
  
        Advancing issues outnumbered declining ones on the NYSE
by a 1.12-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored
advancers.
  
        The S&P 500 posted 11 new 52-week highs and 6 new lows;
the Nasdaq Composite recorded 51 new highs and 135 new lows.  
  
        Volume on U.S. exchanges was 10.39 billion shares,
compared with the 11.48 billion average for the full session
over the last 20 trading days. 
  

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Inflation gauges    https://reut.rs/3JlgVJj
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 (Reporting by Stephen Culp; Additional reporting by Shashwat
Chauhan and Shristi Achar A in Bengaluru; Editing by David
Gregorio)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))