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U.S. stocks are rising after another report showing cooling inflation

Published Jul 13, 2023 09:53AM ET Updated Jul 13, 2023 11:03AM ET
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Investing.com -- U.S. stocks were rising after another inflation gauge confirmed that prices are cooling, giving the Federal Reserve wiggle room when it comes to ending interest rate increases.

At 10:57 ET (14:57 GMT), the Dow Jones Industrial Average rose 44 points or 0.1%, while the S&P 500 rose 0.5% and the NASDAQ Composite rose 1%.

Another inflation reading comes in cooler than forecast

June’s producer price index rose 0.1% for the month, falling short of expectations. Core PPI, which excludes food and fuel, also rose 0.1%, meeting expectations. The data come after Wednesday’s consumer price index for June, which also came in cooler than expected.

Investors look to next Fed meeting

Futures traders expect the Fed to raise rates by a quarter of a percentage point when it meets later this month, but then the outlook is uncertain. While Fed officials have said in recent weeks that it will continue to raise rates this year, evidence that inflation is coming down could convince policymakers that they have raised enough.

A complicating factor is a tight labor market. New unemployment claims for last week unexpectedly fell to 237,000, which is below expectations and below the week before.

Earnings season starts

Amid the optimistic economic data, investors are looking to the second quarter earnings season to guide another rally in stocks. After Delta Air Lines Inc (NYSE:DAL) and PepsiCo Inc (NASDAQ:PEP) today, the big banks start to roll out their reports on Friday.

Delta reported its highest quarterly profit and revenue ever on a surge in travel demand and a 22% drop in fuel costs. It raised its 2023 adjusted profit forecast to $6 to $7 a share, which is higher than the forecast it gave in June. Shares rose 0.7%.

PepsiCo shares rose 0.7% after the soft drink and snack maker beat expectations. Exxon Mobil Corp (NYSE:XOM) fell 1% after saying it plans to buy Denbury (NYSE:DEN), a company that does carbon dioxide-enhanced oil recovery operations, for $4.9 billion.

U.S. stocks are rising after another report showing cooling inflation
 

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Comments (18)
Jason Kim
Jason Kim 9 hours ago
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Unbelievable fake. Hahaha
First Last
First Last 9 hours ago
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The green in the bulls' portfolios today is not fake.
Jason Kim
Jason Kim 9 hours ago
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I’m not talking stocks . I’m talking situations and hidden facts.
Brad Albright
Brad Albright 7 hours ago
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Jason KimIf they are hidden, how do you know them?
soho electronics
soho electronics 9 hours ago
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this is incredible Nasdaq everyday over 1%!! how long can this go on for??
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First Last
First Last 9 hours ago
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Ac Tektrader  "Goldman Sachs is about to report its worst quarterly earnings in years"  --  headline from semafor.com, fyi
Ac Tektrader
Ac Tektrader 8 hours ago
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watch the vix if it starts to rise with the Market then the end is near.....,
Ac Tektrader
Ac Tektrader 7 hours ago
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the further the market moves from this breakout and the dollar continuers it's declined the more likely this rally will continue, tomorrow Will tell the tale. ..... the all-time high is in view......
First Last
First Last 7 hours ago
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Ac Tektrader   Something else to watch for:  Skew dropped before the last two major dips in S&P 500.  Currently, skew is down about 10 from peaking on 2023-05-26.
Ac Tektrader
Ac Tektrader 7 hours ago
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good point.,.....we get that with a rising Vix...alarm bells will be going off in the trading rooms...... seasonally the markets tend to start dropping in the middle to late July into October lows..so the timing for a correction is there as well...... fed meeting 25/26.and nasdg rebalancing July 24
The Puddy Tat Whisperer
The Puddy Tat Whisperer 10 hours ago
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people having to get 2 jobs to afford the free money is actually coming back to hurt.
First Last
First Last 10 hours ago
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Who/what are these people hurting?
Ac Tektrader
Ac Tektrader 9 hours ago
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under Trump it was worse
dylan mulvaney
dylan mulvaney 10 hours ago
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Ac is telling blatant lies. Inflation has outpaced wage growth every month since Biden took office except for one. The cumulative amount of inflation since Biden took office is nearly 20%. The total amount of inflation during all 4 years of Trump in office was only 6.5%.
Sulabh Tripathi
Sulabh Tripathi 10 hours ago
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But then...Russia Ukraine war never happened in Trump's tenure..Food for thought..
Élio Cariano
Élio Cariano 9 hours ago
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and it would not happen if trump would have won last presidential race
Ac Tektrader
Ac Tektrader 11 hours ago
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since July 2022 average hourly earnings have increased over the rise in the consumer price index, joe is telling one of his Right wing half-truths.
Jo Riley
Jo Riley 11 hours ago
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The Bureau of Labor Statistics says "real average hourly earnings have fallen 3.16% during the Biden Presidency." A shocking 72,700 people in families with children were homeless in 20 cities across the nation as of January, a massive 37.6% jump from a year before, according to an analysis of data provided by jurisdictions. Some of the most significant year-over-year changes in family homelessness were in major metros run by Democrats.
First Last
First Last 11 hours ago
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"real average hourly earnings" have been trending up since mid 2022 after trending down since April 2020.  Pandemic stimulus gave it a boost.  It's higher now than pre-pandemic.
Alan Rice
Alan Rice 11 hours ago
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Yeah. We'd be better governed by the GOP (Grifters Of Politics).
Alan Rice
Alan Rice 11 hours ago
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No First Ammendment here.
First Last
First Last 11 hours ago
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US homeless population shrank during the Obama years and then grew in every year of Trump's term.
Maximus Maximus
Maximus Maximus 12 hours ago
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Bidenomics are working.
Casador Del Oso
Casador Del Oso 11 hours ago
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Why is everything so much more expensive than 2 years ago?
Sam Jennings
Sam Jennings 11 hours ago
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If anything is working, it's despite Biden, and into the fact that his communist infested party is likely to LOSE the next elections.
First Last
First Last 11 hours ago
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Sam Jennings  No.  Betting sites show Biden with the highest odds of winning.
First Last
First Last 11 hours ago
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Casador Del Oso  Inflation due to Russian aggression is a big factor.
Bob Bob
Bob Bob 12 hours ago
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Markets rally on anticipation of lower inflation and then again after reports. How many times is it going to rally on the same news?
First Last
First Last 11 hours ago
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The stock market goes up on no news or even mildly bad news, so going up on the same good news repeatedly is no problem.
Prabhat Negi
Prabhat Negi 12 hours ago
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what about lesser jobless claims ? doesn't matter anymore i guess
Antonio Velardo
Antonio Velardo 12 hours ago
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What about seasonal jobs?
Ricardo Diogo
Rcd72 12 hours ago
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weaknesses of usd to pump more stocks .... Next inflation reading will be different
 
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