U.S. Stocks Open Higher As Inflation Rate Eases To This Level In July
U.S. stocks traded higher this morning, following the release of inflation data.
Following the market opening Wednesday, the Dow traded up 1.34% to 33,213.05 while the NASDAQ rose 1.98% to 12,740.76. The S&P also rose, gaining, 1.58% to 4,187.68.
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Leading and Lagging Sectors
Materials shares climbed 2.8% on Wednesday. Meanwhile, top gainers in the sector included Synalloy Corporation (NASDAQ:SYNL), up 15% and Hudbay Minerals Inc. (NYSE:HBM) up 8%.
In trading on Wednesday, energy shares rose by just 0.1%.
Top Headline
The annual inflation rate in the US eased to 8.5% in July from more than 40-year high level of 9.1% in June, and compared to market expectations of 8.7%. Compared to the prior month, the CPI came in unchanged during July, after climbing to a 17-year high of 1.3%.
Equities Trading UP
OraSure Technologies, Inc. (NASDAQ:OSUR) shares shot up 39% to $4.44 after the company reported upbeat Q2 sales and issued strong sales outlook for the current quarter.
Shares of The Trade Desk, Inc. (NASDAQ:TTD) got a boost, shooting 33% to $72.47 after the company reported better-than-expected Q2 sales results and issued Q3 sales guidance above estimates. Additionally, multiple analysts raised their price target on the stock.
Velo3D, Inc. (NYSE:VLD) shares were also up, gaining 25% to $4.47 after reporting upbeat Q2 results.
Equities Trading DOWN
WM Technology, Inc. (NASDAQ:MAPS) shares tumbled 34% to $2.2683 after the company reported worse-than-expected Q2 sales results. Additionally, multiple analysts downgraded and lowered their price target on the stock.
Shares of Redbox Entertainment Inc. (NASDAQ:RDBX) were down 34% to $2.32 after the company said its stockholders approved merger with Chicken Soup for the Soul Entertainment, Inc.
Singular Genomics Systems, Inc. (NASDAQ:OMIC) was down, falling 32% to $3.0150 following Q2 results. Goldman Sachs and B of A Securities also downgraded the stock.
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Commodities
In commodity news, oil traded down 1.1% to $89.80, while gold traded down 0.1% to $1,810.30.
Silver traded up 0.3% to $20.54 on Wednesday while copper rose 1.2% to $3.6320.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 climbed 0.9%, London’s FTSE 100 rose 0.4% while Spain’s IBEX 35 Index rose 0.5%. The German DAX rose 1.1%, French CAC 40 rose 0.7% and Italy’s FTSE MIB Index jumped 0.9%.
Annual inflation rate in Germany fell to 7.5% in July from 7.6% in June, while annual inflation rate in Italy declined to 7.9% year-on-year in July compared to the 36-year high of 8% in the previous month.
Economics
The annual inflation rate in the US eased to 8.5% in July from more than 40-year high level of 9.1% in June, and compared to market expectations of 8.7%. Compared to the prior month, the CPI came in unchanged during July, after climbing to a 17-year high of 1.3%.
Data on wholesale inventories for June will be released at 10:00 a.m. ET. The second estimate of wholesale inventories is an increase of 1.9% in June, which is unchanged versus the first estimate.
The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.
Federal Reserve Bank of Chicago President Charles Evans is set to speak at 11:00 a.m. ET.
The Treasury will auction 10-year notes at 1:00 p.m. ET.
The U.S. Treasury budget statement for July will be released at 2:00 p.m. ET.
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COVID-19 Update
The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 94,128,900 cases with around 1,059,640 deaths. India confirmed a total of at least 44,190,690 cases and 526,820 deaths, while France reported over 34,117,880 COVID-19 cases with 152,820 deaths. In total, there were at least 591,503,840 cases of COVID-19 worldwide with more than 6,442,480 deaths.