Stock market today: Dow hits new high after upbeat PCE data

VaselineSeptember 27, 2024

0 2 minutes read

Stock market today: Dow hits new high after upbeat PCE data

A solid week for stocks ended on a relatively subdued note as investors took another encouraging reading on inflation. With the pace of price growth seemingly under control, the focus now shifts to the labor market and next Friday’s release of the September jobs report.

Today, however, was one inflation update on which Wall Street was centered. right Bureau of Economic AnalysisThe Consumer Price Index and Personal Expenditures (PCE) rose 0.1% in August from the previous month and rose 2.2% on an annual basis. Both figures were lower than those seen in July.

Core PCE, which excludes volatile food and energy prices, rose 0.1% month-on-month and 2.7% year-on-year. While the monthly increase was slower than the 0.2% increase in July, the annual increase was slightly faster.

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“The August PCE report is supportive The Fed’s decision to go big on September 18, although the year-to-date core level at 2.7% suggests another round of 50 basis points needs to be looked at carefully unless the labor market suggests weakness,” it says Quincy Krosbyglobal chief strategist at LPL Financial.

Krosby adds that while the Fed “can’t declare complete victory on inflation,” today’s PCE data “underlines that headline inflation continues to move decisively in the right direction.”

Costco falls after earnings miss

In single-stock news, Costco Wholesale The stock ( COST ) fell 1.8% after the members’ storage club’s fiscal fourth-quarter revenue fell short of estimates. However, the company hit the bottom line.

“We view COST’s long-term outlook very favorably,” says analyst Oppenheimer Rupesh Parikh (Performance, equivalent to Purchase). Among the many reasons why he is optimistic about stock of basic consumer goods are Costco’s unique value and consumer enhancement proposition, its open global growth prospects, and its competitive leadership position that could drive stock gains.

The analyst advises clients to “take advantage” of any subsequent profit-taking on COST.

Super Micro jumps ahead of the stock split

Elsewhere, Super Micro Computer Shares ( SMCI ) are up 4.3% over the next week 10 for 1 stock split. While the stock split is the equivalent of making change — 10 dollar bills for a $10 bill, for example — it will reduce SMCI’s stock price to about $42, from its current perch of nearly $420.

The stock is down 65% from its peak in mid-March, but analyst Needham Quinn Bolton remain optimistic on technology stock. “We view Super Micro as a significant beneficiary of growing investment in AI infrastructure and forecast a compound annual revenue growth rate (CAGR) of over 55% from FY2021 through FY2026,” he wrote in a note recent.

Alibaba headed for its best month in nearly two years

One of the most notable moving factors today has been Alibaba Group Holding (BABA), which added 2.2%. This extends the e-commerce giant’s impressive run in September, with shares up 28.7% for the month to date, and puts BABA on pace for its best monthly return since December 2022 (+33.8%).

BABA was encouraged In the news earlier this month, it launched open-source artificial intelligence (AI) models, while recently announced stimulus measures from the People’s Bank of China have also created tailwinds.

As for the main indices, the Dow Jones Industrial Average gained 0.3% to 42,313 – a new record close – on strength in oil Chevron (CVX, +2.5%) and the insurance giant UnitedHealth Group (UNH, +1.2%). The S&P 500 fell 0.1% to 5,738, while Nasdaq Composite fell 0.4% to 18,119.

VaselineSeptember 27, 2024

0 2 minutes read

Vaseline

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