Dow Jones regains ground on cooling PPI inflation

• The Dow Jones gained 300 points in choppy trading on Tuesday.
• Stocks found higher ground on Tuesday as US inflationary pressures eased.
• After the cooling of the PPI print, US CPI inflation remains in the barrel for Wednesday.

The Dow Jones Industrial Average (DJIA) found the gas pedal on Tuesday, climbing 300 points after US producer price index (PPI) inflation fell more than expected in July. This gave stocks a chance to breathe and sent the DJIA into 39,700.00.

Stock news: Home Depot posts another healthy quarter despite weakness among US consumers

US PPI inflation fell to 2.2% from a year ago in July, falling below the expected 2.3% and falling further from the revised 2.7% in the previous period. Core PPI inflation also fell to 2.4% for the year to July, falling below the forecast of 2.7% and well below the previous level of 3.0%. Continued easing of US inflation pressures strengthened risk appetite in the US market session, with market bets on a double 50 basis point cut in September from the Federal Reserve (Fed) rising to 55%, according to the tool CME’s FedWatch.

US Consumer Price Index (CPI) inflation is the week’s main data print, scheduled for Wednesday. Core CPI inflation is forecast to ease to 3.2% a year from 3.3%. On September 18, markets fully priced in at least a quarter-point discount to the Fed, and continued easing in the inflation rate is likely to trigger another crunch in double-tapering bets.

Dow Jones News

All but five of the Dow Jones constituents were in the green on Tuesday, Walmart Inc. ( WMT ) fell -1.25% to $67.80 per share ahead of the retail giant’s latest earnings report, scheduled for August 15.

Nike Inc. ( NKE ) rose 5.6% on Tuesday to $78.83 a share as the shoe maker sees a rebound in its stock price on what investors are calling “brand momentum” following a shuffling of production lines in downstream and new shoe launches in the franchise that has attracted significant searches. interest. Nike recently took a hit after a weaker-than-expected fiscal quarter performance that sent the stock down from valuations above $90.00 per share.

Dow Jones Price Forecast

Tuesday’s rally in the Dow Jones took the major stock index to a one-week high near 39,800.00 as bidders try to recover the major price of 40,000.00. The Dow Jones recently fell to its lowest prices in weeks near 38,400.00 after being knocked down from all-time highs near 41,400.00.

The DJIA is trading above its 50-day exponential moving average (EMA) for the first time since breaking below its technical average in early August. Longer-term trends are still in favor of buyers, with the index continuing to trade north of the 200-day EMA at 38,166.00.

Dow Jones five-minute chart

Dow Jones Daily Chart