The stock market continued yesterday's rally after this morning's initial jobless claims came in largely as expected and wholesale inflation was better than forecast. The Dow Jones Industrial Average rose a further 200 points, or 0.7%, extending yesterday's 500-plus point gain.
The S&P 500 gained 0.7% and the Nasdaq composite 0.8%. The small-cap Russell 2000 surged 0.9%. Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Wednesday.
The yield on the 10-year Treasury was little changed at 2.8%. Crude oil gained and traded at $93.28 per barrel.
The Innovator IBD 50 ETF rose 1.1%. IBD 50 oil exploration and production company Matador Resources is breaking out of a cup-with-handle base with a buy point of 58.68.
Among other breakouts, electric utility PPL is breaking out of a cup-with-handle base and is in the buy zone from a buy point of 29.44. Western Midstream is above its buy point of 27.80 in a cup-with-handle base.
Key Economic Data Move Dow Jones
Initial jobless claims rose slightly to 262,000, slightly above estimates for 260,000.
The producer price index, which measures the monthly change in the price of goods and services received by manufacturers, fell 0.5% in July from the previous month. Economists expected a 0.3% month-over-month increase. The PPI climbed 9.8% year over year, also less than expected.
According to Jamie Cox, managing partner at Harris Financial Group, today's economic numbers show that "a soft landing is in sight." Chief Investment Officer of Comerica Wealth Management John Lynch, however, cautions that the market is headed toward resistance as the S&P 500 continues to hold above 4200.
Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, also points out that the competing narratives of cooling inflation and possible recession have to be watched closely.
July's lower consumer inflation rate of 8.5% boosted confidence in the stock market yesterday, leading to a broad rally. Tomorrow's employment numbers and the Michigan consumer sentiment data will tell us more about the pace of consumer spending. Personal consumption expenditures actually rose to 6.8% in June — the month that also saw inflation peak. The Michigan index also read a slight improvement in consumer outlook to 51.5 from June's record low of 50.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33582.53 | +273.02 | +0.82 |
| S&P 500 | (0S&P5) | 4248.70 | +38.46 | +0.91 |
| Nasdaq | (0NDQC ) | 12989.55 | +134.74 | +1.05 |
| Russell 2000 | 198.48 | +2.86 | +1.46 | |
| IBD 50 | 29.91 | +0.32 | +1.08 | |
Last Update: 10:14 AM ET 8/11/2022 |
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Dow Jones Leader Beats Views
Shares of Disney surged after earnings late Wednesday. Subscription growth for the company's streaming platform, Disney+, grew by 14.4 million even as revenues from theme parks picked up. Earnings of $1.09 a share on revenue of $21.5 billion topped estimates of 98 cents a share on revenue of $20.99 billion.
The Dow Jones leader plans to increase prices for Disney+ streaming service by 38% while also increasing the price for Hulu and ESPN+. The company's 221 million subscribers base is now larger than that of Netflix. It has a target of 260 million subscribers by 2024.
The stock rose nearly 8% Thursday morning in heavy volume.
Elsewhere, shares of Cardinal Health climbed to new highs after the company missed earnings expectations. Earnings of 50 cents a share were far below forecasts of $1.17 a share. Revenue rose 11% to $47.1 billion. The stock reversed higher and topped a cup base with a buy point of 64.63.
Earnings On Deck
Illumina is on deck with earnings after the market close. The maker of genotyping and array based solutions beat estimates last quarter with earnings of $1.07 a share that came above estimates by 17 cents. Shares have broken above their 50-day line.
Rivian's earnings, due after market close today, will shed further light on the EV startups scene. The company that produced the first EV pickup truck, the R1T in 2021, has been running into supply-chain issues that delayed deliveries times. Shares are trading along a 50-day moving average.
