Dow Jones Today: Stock Futures Move Higher as Investors Await Key Economic Data

Aug 13, 2024
dow-jones-today:-stock-futures-move-higher-as-investors-await-key-economic-data

Stocks moved higher Tuesday morning as investors digested better-than-expected inflation numbers, which kicked off several days of key economic reports that could provide clues on when the Federal Reserve will start cutting interest rates.

The S&P 500 and Nasdaq Composite were up 0.8% and 1.4%, respectively, while the Dow Jones Industrial Average gained 0.3%. On Monday, the S&P 500 and Nasdaq closed slightly higher, extending their winning streaks to three straight sessions, as markets stabilized following a volatile stretch sparked by mounting concerns about the health of the U.S. economy.

The Producer Price Index report released early Tuesday showed further progress on wholesale inflation, which is often viewed as a leading indicator for consumer prices. The consumer price inflation report comes Wednesday, followed by data on retail sales and housing later in the week. Several Fed officials are also slated to speak in the coming days.

The economic data is being closely monitored by the Fed as it considers when to start cutting rates that are at a two-decade high. Fed Chair Jerome Powell has said the central bank could start cutting its benchmark lending rate as soon as September if inflation continues to moderate.

The yield on 10-year Treasurys was at 3.87%, slipping below 3.9% Tuesday for the first time since last Wednesday. The yield had dropped below 3.7% early last week after a weaker-than-expected July jobs report led market participants to believe the Fed would need to cut rates swiftly and deeply address economic weakness. The concerns eased later in the week when weekly jobless claims numbers were more benign,

Starbucks (SBUX) was the big mover in early trading, soaring more than 20% after the company announced that Chipotle (CMG) Chief Executive Officer Brian Niccol would be joining the coffee chain as CEO. Chipotle shares tumbled more than 10%.

Shares of large-cap tech stock were gaining ground in early trading, with Nvidia (NVDA) up 4% while Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL) and Meta Platforms (META) were also on the rise.

Home Depot (HD), a Dow component, was up slightly after reporting earnings. The home improvement retailer said its 2024 comparable sales would decline more than it had previously forecast, offsetting second-quarter sales and profit that topped expectations.

Gold futures were up slightly at around $2,510 per ounce, nearing fresh record highs, while bitcoin was holding steady at just above $59,000.

What to Expect from Google’s Launch Event

1 hr 30 min ago

Alphabet’s Google (GOOGL) on Tuesday will hold its annual Made By Google launch event, where it will unveil the next generation of Pixel smartphones, as well as provide updates on how it’s integrating artificial intelligence into its devices with Gemini.

Mizuho analysts said the event could be the “next catalyst” for shares of Alphabet.

The company said it will unveil a “new era of phones” with the Pixel 9 Pro and Pixel 9 Pro Fold. The new devices are to be supercharged with AI capabilities from Google’s AI model Gemini.

The new devices could help Google better compete with Apple’s (AAPLupcoming iPhone 16 equipped with Apple Intelligence.

Alphabet shares were up 0.8% at $163.51 in recent trading. The stock has gained 16% so far in 2024, though it’s down sharply from its July high of $191.75 amid a broader tech downturn.

TradingView

Read the full preview here.

Naomi Buchanan

Starbucks Soars After Company Names Chipotle Chief as CEO

2 hr 21 min ago

Starbucks (SBUX) shares soared in early trading Tuesday after the coffee giant announced the hiring of Chipotle Mexican Grill (CMG) chief Brian Niccol as its new CEO, replacing Laxman Narasimhan, who is departing immediately.

Incoming Starbucks CEO Brian Niccol (left) walks down the fairway with PGA tour professional Scottie Scheffler (middle) during the ProAm event prior to the Memorial Tournament in Dublin, Ohio, on June 5, 2024.

Dylan Buell / Getty Images

Niccol will assume the job starting Sept. 9, with Starbucks CFO Rachel Ruggeri set to take the interim CEO title for the next month. Meanwhile, Chipotle has selected COO Scott Boatwright to serve as its interim CEO once Niccol leaves his position at the end of the month.

Starbucks has faced pressure to make changes in recent weeks as reports have emerged that a pair of activist investors, Elliott Investment Management and Starboard Value, have bought stakes in the coffee chain.

The funds haven’t publicly stated their goals, but reports have indicated that Starbucks has engaged with Elliott on ideas to boost the company’s sales and stock. Starbucks’ recent earnings reports have disappointed, with same-store sales declining as consumers pull back on discretionary spending.

Starbucks shares were up 20% while Chipotle was down more than 12% about half an hour after the opening bell.

Aaron McDade

Stock Futures Tied to Major Indexes Higher

4 hr 3 min ago

Futures tied to the Dow Jones Industrial Average were up fractionally.

TradingView

S&P 500 futures were up 0.2%.

TradingView

Nasdaq 100 futures were up 0.4%.

TradingView

Leave a comment