US open: Stocks gain after downside June CPI surprise

by | Jul 12, 2023

(Sharecast News) – Wall Street got a boost in the middle of the week from a softer-than-expected reading on the cost of living in the US.

As at 1611 BST, the Dow Jones industrials was up 0.8% to 34,537.64 with the S&P 500 adding 0.97% to 4,482.48.

The Nasdaq Composite meanwhile was ahead by 1.23% to 13,931.56.

In parallel, front-dated gold caught a bid worth 1.26% taking it to $1,961.30/oz. and West Texas Intermediate crude oil futures were ahead by 1.58% to $76.01 a barrel on NYMEX.

According to the U.S. Department of Labor, headline and core consumer prices rose by 0.2% month-on-month in June.

The consensus had been 0.3% for both.

At the core level, the annualised rate of increase slipped to 4.8% (consensus: 5.1%) and in annualised terms core services price ex-rents ebbed over the three months just ended.

For Ian Shepherdson, chief economist at Pantheon Macroeconomics, core CPI was “falling fast, with more to come”.

Smaller 0.1% on the month gains for core CPI in July and August were “decent bets”, he added.

The yield on the benchmark 10-year US Treasury note meanwhile was down by 10 basis points to 3.87%.

On the corporate front, Microsoft was trading 2% stronger after a U.S. judge cleared the path for its takeover of Activision Blizzard.

In other M&A news, Broadcom’s acquisition of VMware got the green light from European Union regulators.

Coty shares were off 2% following a report that Kim Kardashian is considering buying back a minority stake in the beauty line.

Dow Jones – Risers

Goldman Sachs Group Inc. (GS) $329.96 2.83%
Home Depot Inc. (HD) $320.47 2.17%
Microsoft Corp. (MSFT) $339.19 2.02%
Dow Chemical Co. (DOW) $54.42 1.88%
American Express Co. (AXP) $177.49 1.63%
Caterpillar Inc. (CAT) $256.65 1.50%
Salesforce.Com Inc. (CRM) $224.02 1.29%
JP Morgan Chase & Co. (JPM) $149.26 1.25%
Amgen Inc. (AMGN) $226.64 1.24%
Visa Inc. (V) $243.32 1.15%

Dow Jones – Fallers

Cisco Systems Inc. (CSCO) $51.27 -1.64%
Unitedhealth Group Inc. (UNH) $456.94 -1.29%
International Business Machines Corporation (CDI) (IBM) $133.84 -0.45%
Travelers Company Inc. (TRV) $172.03 -0.19%
Johnson & Johnson (JNJ) $158.58 -0.03%
Dowdupont Inc. (DWDP) $0.00 0.00%
Walgreens Boots Alliance, Inc. (WBA) $30.60 0.09%
Merck & Co. Inc. (MRK) $108.83 0.12%
Procter & Gamble Co. (PG) $148.37 0.20%
Verizon Communications Inc. (VZ) $35.08 0.24%

S&P 500 – Risers

Jefferies Financial Group Inc. (JEF) $35.54 5.76%
Zions Bancorporation (ZION) $32.00 5.18%
Comerica Inc. (CMA) $48.43 4.99%
Invesco Ltd. (IVZ) $18.41 4.81%
Keycorp (KEY) $10.40 4.79%
Eastman Chemical Co. (EMN) $87.94 3.75%
Newmont Corporation (NEM) $44.93 3.74%
Freeport-McMoRan Inc (FCX) $41.04 3.36%
Microchip Technology Inc. (MCHP) $91.32 3.31%
Citizens Financial Group, Inc. (CFG) $28.45 3.17%

S&P 500 – Fallers

Centene Corp. (CNC) $65.00 -4.07%
Elevance Health Inc. (ELV) $420.66 -3.28%
CIGNA Corp. (CI) $273.00 -3.10%
Coty Inc. Class A (COTY) $12.77 -1.85%
Humana Inc. (HUM) $429.16 -1.84%
W.W. Grainger Inc. (GWW) $781.11 -1.83%
Cisco Systems Inc. (CSCO) $51.27 -1.64%
Juniper Networks Inc. (JNPR) $30.96 -1.59%
Activision Blizzard Inc. (ATVI) $89.65 -1.47%
Take-Two Interactive Software Inc. (TTWO) $148.53 -1.47%

Nasdaq 100 – Risers

JD.com, Inc. (JD) $37.46 4.00%
Asml Holdings N.V. (ASML) $729.47 3.47%
Trip.com Group Limited (TCOM) $37.08 3.36%
Microchip Technology Inc. (MCHP) $91.32 3.31%
Baidu Inc. (BIDU) $147.87 3.17%
NetEase Inc. Ads (NTES) $101.74 3.13%
Meta Platforms Inc. (META) $307.00 2.92%
Nvidia Corp. (NVDA) $435.60 2.72%
Illumina Inc. (ILMN) $189.56 2.56%
Autodesk Inc. (ADSK) $217.48 2.56%

Nasdaq 100 – Fallers

Cisco Systems Inc. (CSCO) $51.27 -1.64%
Activision Blizzard Inc. (ATVI) $89.65 -1.47%
Take-Two Interactive Software Inc. (TTWO) $148.53 -1.47%
Check Point Software Technologies Ltd. (CHKP) $126.18 -1.28%
Electronic Arts Inc. (EA) $135.76 -1.14%
Western Digital Corp. (WDC) $38.03 -0.85%
Seagate Technology Plc (STX) $60.74 -0.52%
Biomarin Pharmaceutical Inc. (BMRN) $84.90 -0.41%
American Airlines Group (AAL) $18.76 -0.19%
eBay Inc. (EBAY) $46.83 -0.15%

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