Dow Jones, S&P 500 Climb; Starbucks’ Gain Is Chipotle’s Loss

Aug 13, 2024
dow-jones,-s&p-500-climb;-starbucks’-gain-is-chipotle’s-loss

The Nasdaq composite and the S&P 500 climbed Tuesday after getting a boost from July wholesale inflation numbers. Starbucks (SBUX) surged after the coffee chain poached Chipotle Mexican Grill’s (CMG) CEO.

X NOW PLAYING This Is How To Determine What To Buy On A Follow-Through Day

The Nasdaq composite climbed 1.4% and is attempting a fourth-straight gain. The S&P 500 added 0.8% and is also on pace for a fourth-straight increase.

The Dow Jones Industrial Average was the weakest of the three major indexes, up only 0.2%. It is testing its 50-day moving average for a sixth straight day.

Meanwhile, the small-cap Russell 2000 joined in with a 0.5% rise on the stock market today.

Volume was higher on the Nasdaq and the NYSE vs. the same time Monday.

In the bond market, the 10-year Treasury yield shed five basis points to 3.86% Tuesday. U.S. crude oil fell about 1% to around $79.05 a barrel.

Data Shows Cooling Inflation

The July Producer Price Index rose 0.1% vs. the 0.2% increase economists expected. It was also lower than June’s 0.2% increase. Excluding the more-volatile food and energy prices, producer prices were flat vs. the 0.2% rise expected and came in lower than June’s 0.4% increase.

The year-over-year PPI increased 2.2%, also below a 2.6% forecast. The annual PPI excluding food and energy rose 2.4% vs. estimates for a 3% increase.

The National Federation of Independent Business Small Business Optimism Index rose to 93.7 and topped the 91.7 estimate, and it was higher than June’s 91.5 reading. The increase shows an uptick in economic expectations of small businesses based on 10 factors, including plans to increase employment and inventories, economic improvement and expected real sales.

Stock Market Today: Nvidia, Starbucks Jump

IBD Leaderboard stock Nvidia (NVDA) popped around 4.8% and reclaimed its 21-day exponential moving average.

Starbucks gapped up more than 22% in heavy volume on news chief executive officer and board member Laxman Narasimhan will step down immediately. He will be replaced with Chipotle’s CEO, Brian Niccol, effective Sept. 9. The stock reclaimed its downward-sloping 200-day moving average.

Starbucks stock is on pace for its best day on record, according to Dow Jones Market Data. The coffee retail stock was the best performer on S&P 500 in the stock market today. Starbucks stock has struggled as the company has showed declining profit and revenue for the last two quarter. Fiscal 2024 earnings are expected to be flat vs. 2023.

Meanwhile, Chipotle stock took a 12% hit on the news. The restaurant stock gapped below its 200-day line and has lost 30% from its 52-week high reached on June 18. In contrast to Starbucks, Chipotle was the biggest loser on the on S&P 500 in the stock market today.

On Holding (ONON) reversed higher more than 4% in heavy volume following a mixed Q2 report. The footwear company posted lower-than-expected second-quarter adjusted earnings but beat sales views. The stock is in an irregular base with a 44.30 buy point, although the patter may also be interpreted as a double bottom with a 42.45 entry.

Musk, Trump Stocks Show Mixed Results

Former President Donald Trump’s Trump Media & Technology (DJT) fell nearly 6% continues to fall further below its 50-day line after Trump held a conversation on Elon Musk’s X platform Monday night.

Tesla (TSLA) advanced 3.6% and is bumping up to its 200-day moving average, where resistance appeared the past several days.

Dow Jones stock Home Depot (HD) reversed higher 0.6%. The company missed second-quarter sales estimates but adjusted earnings topped views. It also gave full-year adjusted profit guidance below forecasts and sees full-year comparable sales declining vs. 2023.

Home Depot is holding above its 200-day line and is testing the nearby 50-day line. Share are in an undefined base with a 396.87 buy point. The home improvement retail stock has underperformed as seen by its mediocre 58 IBD Relative Strength Rating and 56 Composite Rating. Shares are flat so far this year.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

YOU MAY ALSO LIKE:

Cybersecurity Stock Tacks On More Gains After Earnings Jump | Stocks To Watch

Use Sector Rotation To Find Emerging Leading Stocks | Stocks To Watch

Looking For Market Insights? Check Out Our Live Daily Segment | Stocks To Watch

Financial Company Fares Better Than Most On Brutal Day | Stocks To Watch

S&P 500 Earnings Shrivel Without Magnificent Seven Names Like Nvidia, Meta | Stocks To Watch

Leave a comment