Stocks have fluctuated over the course of the trading day on Thursday, with the major averages showing relatively modest moves following the substantial turnaround seen in the previous session.
Currently, the major averages are turning in a mixed performance. While the Dow is down 49.66 points or 0.1 percent at 40,812.05, the S&P 500 is up 7.05 points or 0.1 percent at 5,561.18 and the Nasdaq is up 58.44 points or 0.3 percent at 17,435.97.
The lackluster performance on the day comes as traders digest the latest inflation data, with the Labor Department releasing a report on producer price inflation before the start of trading.
The Labor Department said its producer price index for final demand crept up by 0.2 percent in August, while revised data showed prices were unchanged in July.
Economists had expected producer prices to inch up by 0.1 percent, matching the uptick originally reported for the previous month.
Following yesterday’s report showing a slightly bigger than expected increase by core consumer prices, the data has further reduced expectations for aggressive interest rate cuts by the Federal Reserve.
At the same time, the report said the annual rate of producer price growth slowed to 1.7 percent in August from a downwardly revised 2.1 percent in July.
The year-over-year increase by producer prices was expected to decelerate to 1.8 percent from the 2.2 percent originally reported for the previous month.
“Core CPI surprised yesterday, and PPI came in hotter than forecast today, but we don’t think we’re at the start of a renewed rise in inflation,” said Nationwide Financial Markets Economist Oren Klachkin
“Rather, we think they are evidence of a bumpy path to 2%,” he added. “A cooling economy and deflating labor market should dampen price pressures going forward.”
The Labor Department also released a separate report showing a modest increase by first-time claims for U.S. unemployment benefits in the week ended September 7th.
Sector News
Gold stocks have moved sharply higher along with the price of the precious metal, resulting in a 4.8 percent spike by the NYSE Arca Gold Bugs Index.
Substantial strength is also visible among networking stocks, with the NYSE Arca Networking Index surging by 3.1 percent to a record intraday high.
Shares of Netgear (NTGR) have skyrocketed by 32.0 percent after the company raised its third quarter revenue guidance and said it has settled a patent dispute with TP-Link Systems.
Oil service, telecom and steel stocks are also seeing considerable strength on the day, while a steep drop by Moderna (MRNA) is weighing on the biotechnology sector.
Moderna is plunging by 16.9 percent after the drugmaker said it expects to reduce annual research and development expenses by approximately $1.1 billion by 2027.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index soared by 3.4 percent, while Hong Kong’s Hang Index climbed by 0.8 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 0.9 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both up by 0.5 percent.
In the bond market, treasuries are extending the slight pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.6 basis points at 3.689 percent.
Business News
U.S. Stocks Turning In Lackluster Performance Following Inflation Data
2024-09-12 15:29:54
