The stock market rose after cooling inflation. The producer price index (PPI), which measures selling prices that producers get for goods and services, increased 0.1% in July. Core PPI, which excludes food and energy, was flat from the previous reading. Economists had expected an increase of 0.2% for both measures.
The S&P 500 is up 1.5%, and the tech-heavy Nasdaq Composite added 2.3%. The Dow Jones Industrial Average added 0.9%, and the Russell 2000 Index rose 1.2%.
All Mag 7 stocks are up midday. Nvidia added another 5% following yesterday's 4% increase, trading around $115.
In the retail sector, Home Depot stock added 1.6% after earnings beat, while Walmart stock dropped 1% before its earnings on Thursday. Estee Lauder and Nike were up 6% and 5%, respectively, leading the S&P 500 Index. Kroger lost 2%.
Investors are awaiting Wednesday’s Consumer Price Index (CPI).
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
- Starbucks Corp (SBUX) +20.7%
- Estee Lauder Companies Inc (EL) +6.7%
- Nike Inc (NKE) +5.8%
- Super Micro Computer Inc (SMCI) +5.7%
- NVIDIA Corp (NVDA) +5.3%
The worst-performing five S&P 500 stocks with the largest midday drop are:
- Chipotle Mexican Grill Inc (CMG) -9.6%
- Baxter International Inc (BAX) -5.6%
- EQT Corp (EQT) -3.1%
- Kroger Co (KR) -2.5%
- Diamondback Energy Inc (FANG) -2.3%
Stocks also worth noting with significant moves include:
- Home Depot Inc (HD) +1.6%
- Walmart (WMT) -1.2%
- Tesla (TSLA) +4.6%
- Meta platforms (META) +2.5%
- Apple (AAPL) +1.8%
Starbucks soars on CEO change
Starbucks stock soared 20% after a surprising CEO change.
The coffee giant announced on Tuesday morning that it will appoint Chipotle’s Brian Niccol as its new Chairman and Chief Executive, effective September 9. The current CEO, Laxman Narasimhan, will step down from his position immediately.
Niccol has been Chipotle’s CEO since 2018 and previously led Taco Bell. Chipotle's stock soared by over 700% during his tenure.
Related: Starbucks CEO gets unexpectedly tossed; analyst resets stock target
In July, Starbucks reported fiscal third-quarter revenue that missed analysts' expectations. The June quarter revenue came in at $9.11 billion, falling short of the projected $9.24 billion. The company earned 93 cents per share, aligning with the anticipated figure.
Chipotle’s earnings were better during the same stretch amid an overall pressured market. Revenue and earnings per share beat estimates, and restaurant traffic rose 8.7%.
Chipotle stock lost 10% after the announcement.
Nike surges on analyst rating and website visit boost
Nike stock gained 5% midday as Bernstein SocGen Group maintained an outperform rating with a stable price target of $112.
According to Investing.com, Bernstein SocGen observed notable improvements in the brand's performance metrics after implementing a strategic assortment reset in Q2 CY24. Its Pegasus brand gained more search interest and favorable retailer feedback.
Related: Nike reveals major product changes to repair its declining sales
Nike’s sales and website visits were boosted during the 2024 Summer Olympics, Reuters reported, citing research firm Similarweb.
On July 31, Nike's website traffic peaked at 2 million visits and recorded 86,900 sales, whereas Adidas had 532,500 visits, yet only 3,600 were likely to result in purchases.
"This Olympics will be our biggest ... it will be our largest media spend," Nike’s consumer, product, and brand president, Heidi O'Neill, told Reuters. "This will be the most investment and the biggest moment for Nike in years."
Home Depot stock pops after earnings beat
Home Depot stock added 1.6% after the company released its financial results for the three-month period ending July 28.
The home improvement retailer earned $4.60 per share on revenue of $43.18 billion, topping the expected $4.49 per share and revenue of $43.06 billion.
More Retail Stocks:
- Analysts reboot Amazon stock price targets after earnings
- Costco makes an unpopular policy change (maybe for a good reason)
- Amazon CEO warns of trend that’s making consumers flee pharmacies
Meanwhile, the company expects weak demand throughout the year as homeowners feel pressure to make big purchases.
“During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects," said CEO Ted Decker in a press release.
Home Depot has lowered its full-year outlook for comparable sales to a 3% to 4% decline.
Related: Veteran fund manager sees world of pain coming for stocks
