Dow rises by more than 100 points following the release of low inflation figures, Disney shares rise Live updates
Stocks climbed on Thursday after an important inflation report revealed slightly lower year-over-year inflation than was expected.
The Dow Jones Industrial Average gained 131 points, 0.4 per cent. The S&P 500 The index climbed 0.3 per cent, as did the Nasdaq Composite. It gained 0.2 0.2%. The three indexes all gained more than 1% earlier during the session.
July’s consumer prices rose 3.2 per cent annually, less than the 3.3 per cent consensus of economists surveyed by Dow Jones. In a month-to-month comparison, inflation rose 0.2 per cent, which aligns with estimates. The report also stated that the average weekly earnings were unchanged in June, another encouraging sign.
However, the report showed sure signs of inflation that were sticky. Besides energy and food, the so-called”core July” CPI reading increased by 4.7 per cent annually, well above the Fed’s target of 2. In addition, headline inflation was higher than the annual rate of 3% in June.
“Overall, this builds on the market’s expectations around a potential soft landing,” said Michelle Culver, portfolio strategist at Global X. “This was an encouraging inflation print for markets and Fed expectations.”
Meanwhile, Disney increased by more than 3.3% following the announcement of a Price rise to get ads-free Disney+ subscriptions. The company also reported the fiscal third quarter’s earnings per share that beat estimates. Wynn Resorts increased by 3.3% on a more-than-expected report.
More than 90 per cent of S&P 500 companies reported earnings for the last quarter in the early hours of Thursday morning. About four-fifths of them have exceeded Wall Street expectations, according to FactSet.
