Stocks were higher Wednesday morning after the release of the closely watched consumer price index report, as the U.S. equities market looks to rebound from a downturn yesterday that snapped a post-election winning streak.
The Dow Jones Industrial Average and S&P 500 were up 0.4% and 0.2%, respectively, while the Nasdaq Composite was flat. The major indexes finished lower Tuesday as the market took a breather after hitting a series of record highs following Donald Trump’s victory in the presidential election and the Federal Reserve’s move to cut interest rates last week.
The CPI report showed that prices rose 0.2% last month, while annual inflation came in at 2.6%, with both numbers matching economists’ estimates. The data helped reinforce expectations that the Fed will cut rates again at its policy meeting in December.
The yield on 10-year Treasurys, which is correlated to expectations around interest rates, was at 4.41% in recent trading versus 4.43% at yesterday’s close. The yield has been rising in recent weeks as investors have recalibrated their thinking on how aggressive the Fed will be in its moves to cut interest rates in the months ahead.
Tesla (TSLA), which has gained more than 30% over the past week as investors bet that the EV maker stands to benefit from CEO Elon Musk’s close relationship with the president-elect, was up slightly in recent trading after rising more than 3% earlier in Wednesday’s session. Other mega-cap technology stocks were mixed, with AI investor favorite (NVDA), Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (META) losing ground while Apple (AAPL) and Amazon (AMZN) inched higher.
Among other noteworthy movers this morning, shares of Cava Group (CAVA) were up 6% after the fast-casual restaurant chain reported strong earnings, while streaming giant Spotify (SPOT) gained 11% after releasing its results late yesterday. Rocket Companies (RKT) was down 8% after the mortgage lender released its earnings report.
Bitcoin surged to a new record high above $92,000. The cryptocurrency has gained more than 30% since the election amid hopes that a supportive White House and Congress will implement policies that benefit the asset class.
Gold was down slightly at around $2,600 an ounce. The precious metal, which hit a record high of $2,800 early last week, has lost ground since the election as the U.S. dollar has strengthened.
Rivian Soars on Upsized Volkswagen JV
40 minutes ago
Rivian Automotive (RIVN) shares soared Wednesday after the electric vehicle manufacturer expanded its partnership with Volkswagen in a move aimed at helping both firms find ways to grab more of the market for EVs.
The carmakers announced a new joint venture that would see Volkswagen inject as much as $5.8 billion into the struggling EV firm. The plan increases the initial $5 billion deal value reported in June.
Rivian noted the agreement would tap into the strength of the partnership “to create cutting-edge software and electronics architectures and scale the electric vehicle platforms and architectures.”
The JV is seen “enabling the launch of Rivian’s R2 in the first half of 2026 and support the expected launch of the first models from the Volkswagen Group as early as 2027.”
Kyle Grillot / Bloomberg / Getty Images
Rivian shares were up 20% in recent trading. Despite the surge this morning, the stock is down 46% since the start of 2024.
Cava Rises to All-Time High on Strong Earnings, Outlook
1 hr 55 min ago
Shares of Cava Group (CAVA) jumped in early trading Wednesday, a day after the fast-casual chain reported third-quarter results above expectation and lifted its fiscal 2024 same-store sales growth outlook.
Cava reported net income of $18 million on revenue of $241.5 million, both significantly higher than a year ago and above consensus estimates of analysts compiled by Visible Alpha. Cava’s same-store sales rose by 18% year-over-year, consisting of a 13% rise in traffic and 5% increase from menu prices and product mix.
The chain raised some of its full-year projections, as it expects to open more stores than previously guided and sees same-store sales growing by 12% to 13%, up from 8.5% to 9.5% last quarter, which itself had been raised from the prior 4.5% to 6.5% range.
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Cava shares have risen repeatedly following strong earnings since its initial public offering (IPO) last year. The stock was up 9% at around $158 in recent trading, after surging to a record high of $172.43 early in the session.
However, JPMorgan analysts reiterated their “neutral” rating Wednesday, saying they believe “many years of growth” is already priced into the stock, although they raised their price target to $110 from $90.
Spotify Surges After Earnings—Key Levels to Watch
3 hr 23 min ago
Spotify (SPOT) shares jumped in premarket trading Wednesday after the streaming media giant topped Wall Street’s third-quarter subscriber growth estimates and issued a better-than-expected profit outlook.
The stock has continued to track higher after retesting the top trendline of an ascending triangle, though a relative strength index reading over 70 signals overbought conditions.
A bars pattern, which extracts the stock’s upward trend from January to April and repositions it from the ascending triangle’s top trendline, forecasts a bullish price target in Spotify shares of around $525.
Investors should monitor important support areas on the streaming giant’s chart around $389, $350, and $320.
The stock was up 9% at $457 in recent premarket trading.
Read the full technical analysis piece here.
Major Stock Index Futures Lower Ahead of Inflation Data
4 hr 12 min ago
Futures tied to the Dow Jones Industrial Average were down 0.3%.
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S&P 500 futures were down 0.2%.
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Nasdaq 100 futures were off 0.3%.
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