US open: Stocks spring higher on softer than expected CPI data

by | Nov 14, 2023

(Sharecast News) – Stocks on Wall Street sprang higher on the back of a softer-than-expected reading for US consumer prices.

Ian Shepherdson, chief economist at Pantheon Macroeconomics said that the October CPI was the “(almost) final nail in the coffin for the Fed’s rate hike optionality”.

As at 1530 GMT, the Dow Jones Industrial Average was ahead by 1.46% to 34,840.86, alongside a 1.91% jump for the S&P 500 to 4,497.13 while the Nasdaq Composite was climbing 2.3% to 14,084.29.

In parallel, the yield on the benchmark 10-ýear U.S. Treasury note was off by 18 basis points to 4.453%.

According to the U.S. Department of Labor, the annual rate of increase in CPI fell from 3.7% for September to 3.2% in October (consensus: 3.3%).

More significantly, core CPI ticked down from 4.1% to 4.0% (consensus: 4.1%).

“[…] Bumps in the road are still likely,” Shepherdson wrote in a research note sent to clients.

“But the combination of a full reversal of pandemic-driven supply-side problems, and the likely moderation in demand growth, means that the conditions for sustained disinflation are in place.”

Shares of Home Depot and Walgreens Boots were pacing gains on the Dow.

Snapchat shares were rising 8% on reports that the social media company had entered into a partnership with Amazon to allow in-app purchases from the e-commerce group.

Beauty Health dropped nearly 60% after the skincare reported a worse-than-expected third-quarter loss and delivered full-year revenue guidance short of analysts’ estimates.

Dow Jones – Risers

Home Depot Inc. (HD) $305.52 6.06%
Walgreens Boots Alliance, Inc. (WBA) $21.00 4.14%
Dow Chemical Co. (DOW) $51.06 3.69%
Goldman Sachs Group Inc. (GS) $337.81 3.33%
3M Co. (MMM) $95.01 2.50%
Caterpillar Inc. (CAT) $246.93 2.18%
Amgen Inc. (AMGN) $272.39 2.14%
Intel Corp. (INTC) $39.04 2.12%
Salesforce.Com Inc. (CRM) $219.71 2.06%
Nike Inc. (NKE) $106.22 1.94%

Dow Jones – Fallers

Travelers Company Inc. (TRV) $169.51 -0.87%
Unitedhealth Group Inc. (UNH) $540.65 -0.35%
Dowdupont Inc. (DWDP) $0.00 0.00%
Merck & Co. Inc. (MRK) $102.69 0.21%
Johnson & Johnson (JNJ) $148.01 0.26%
Coca-Cola Co. (KO) $57.12 0.33%
Procter & Gamble Co. (PG) $152.98 0.34%
Chevron Corp. (CVX) $144.54 0.38%
McDonald’s Corp. (MCD) $271.02 0.68%
Verizon Communications Inc. (VZ) $36.09 0.75%

S&P 500 – Risers

Sl Green Realty Corp. (SLG) $34.42 16.23%
CenturyLink Inc. (LUMN) $1.32 14.35%
Vornado Realty Trust (VNO) $22.73 13.93%
VF Corp. (VFC) $15.82 11.80%
Boston Properties Inc. (BXP) $56.52 10.37%
Zions Bancorporation (ZION) $35.88 9.69%
Keycorp (KEY) $11.90 9.68%
Macerich Co (MAC) $11.02 9.27%
Alexandria Real Estate Equities Inc. (ARE) $102.63 8.82%
Norwegian Cruise Line Holdings Ltd (NCLH) $14.22 8.51%

S&P 500 – Fallers

CIGNA Corp. (CI) $287.40 -2.28%
Cardinal Health Inc. (CAH) $102.69 -2.15%
Chubb Corp. (CB) $217.70 -1.94%
McKesson Corp. (MCK) $461.79 -1.88%
CME Group Inc. (CME) $213.74 -1.54%
Unum Group (UNM) $42.59 -1.41%
Progressive Corp. (PGR) $160.05 -1.15%
Cencora Inc (COR) $197.03 -0.93%
Travelers Company Inc. (TRV) $169.51 -0.87%
Gallagher Arthur J (AJG) $246.21 -0.62%

Nasdaq 100 – Risers

Dish Network Corp. (DISH) $3.52 5.71%
Align Technology Inc. (ALGN) $201.98 5.63%
DENTSPLY Sirona Inc. (XRAY) $29.33 5.09%
Idexx Laboratories Inc. (IDXX) $454.20 5.04%
Illumina Inc. (ILMN) $97.44 5.02%
Mercadolibre Inc. (MELI) $1,445.51 4.88%
Liberty Global plc Series A (LBTYA) $16.11 4.81%
Hasbro Inc (HAS) $44.93 4.78%
Microchip Technology Inc. (MCHP) $80.23 4.71%
Liberty Global plc Series C (LBTYK) $17.18 4.47%

Nasdaq 100 – Fallers

Vodafone Group Plc ADS (VOD) $9.29 -2.42%
Check Point Software Technologies Ltd. (CHKP) $140.56 -1.87%
NetEase Inc. Ads (NTES) $113.50 -1.42%
Activision Blizzard Inc. (ATVI) $94.42 0.00%
Alexion Pharmaceuticals Inc. (ALXN) $0.00 0.00%
Maxim Integrated Products Inc. (MXIM) $0.00 0.00%
Celgene Corp. (CELG) $0.00 0.00%
Xilinx Inc. (XLNX) $0.00 0.00%
Cerner Corp. (CERN) $0.00 0.00%
Mylan Inc. (MYL) $0.00 0.00%

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