US open: Stocks extend gains after softer-than-expected producer price data

Wall Street shares were again trading on the front foot thanks to another subdued reading on price pressures.

At 1507 BST, the Dow Jones Industrial Average was adding 0.31% to 34,453.05, while the S&P 500 was sporting a gain of 0.54% to 4,496.29.

But it was the technology laden Nasdaq Composite that was faring best, rising 0.95% to 14,051.84.

In parallel, the yield on the benchmark 10-year US Treasury note was down six basis points at 3.804% and the spot dollar index at the psychological 100.0 point mark.

According to the U.S. Department of Labor, headline and core consumer prices both rose at a month-on-month pace of 0.1% in June (consensus: 0.2%).

In quarterly annualised terms, wholesale prices were up by just 1.0% over the three months to June, the least since the onset of the Covid pandemic in spring 2020, Ian Shepherdson, chief economist at Pantheon Macroeconomics said.

Already before the release of the latest price data, Joshua Mahony, chief market analyst at Scope Markets, said: "Wall Street is on fine form in the wake of yesterday’s muted inflation readings. Whilst conviction may still be behind the Fed making one more quarter point rate hike, expectations now have to be sliding towards this being the top of the policy tightening cycle.

"The S&P posting a fresh closing high for the year last night encapsulated sentiment and there’s certainly little evidence to suggest that a hard landing for the economy could be on the cards."

Labor did also reported another unexpected drop in initial unemployment claims of 11,000 to 237,000 for the week ending on 8 July (consensus: 250,000).

Nonetheless, Sheperdson recommended a healthy dose of skepticism due to seasonal adjustment problems with the data.

On the corporate front, Viasat tumbled, shedding roughly one third of its market value, after it said late on Wednesday that one of its recently-launched satellites had suffered a malfunction while deploying its reflector.

Not lost on investors either was the fact that the second-quarter earnings season was set to go into full swing on Friday with results due out from JPMorgan, Citigroup and Wells Fargo.

Delta Airlines posted record second quarter sales and profits and hiked its full-year guidance.

PepsiCo shares were also wanted after the drinks and food giant posted stronger than expected quarterly earnings and guidance.

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $229.82 1.12%
International Business Machines Corporation (CDI) (IBM) $134.30 1.10%
Amgen Inc. (AMGN) $227.79 0.93%
Microsoft Corp. (MSFT) $340.22 0.90%
American Express Co. (AXP) $175.65 0.76%
3M Co. (MMM) $102.32 0.74%
Cisco Systems Inc. (CSCO) $51.10 0.70%
Caterpillar Inc. (CAT) $255.27 0.66%
Goldman Sachs Group Inc. (GS) $328.25 0.57%
Coca-Cola Co. (KO) $60.16 0.53%

Dow Jones - Fallers

Travelers Company Inc. (TRV) $169.92 -0.70%
Verizon Communications Inc. (VZ) $34.63 -0.67%
Walmart Inc. (WMT) $154.24 -0.52%
Walt Disney Co. (DIS) $89.89 -0.29%
Home Depot Inc. (HD) $316.70 -0.26%
Procter & Gamble Co. (PG) $148.48 -0.25%
Boeing Co. (BA) $216.80 -0.14%
Johnson & Johnson (JNJ) $158.04 -0.03%
Dowdupont Inc. (DWDP) $0.00 0.00%
Intel Corp. (INTC) $33.98 0.00%

S&P 500 - Risers

Perrigo Company plc (PRGO) $34.63 4.69%
Apache Corp. (APA) $38.71 3.19%
MGM Resorts International (MGM) $48.47 3.00%
Alphabet Inc. Class A (GOOGL) $122.46 2.97%
CenturyLink Inc. (LUMN) $2.10 2.87%
Alphabet Inc. Class C (GOOG) $123.02 2.84%
Applied Materials Inc. (AMAT) $142.79 2.81%
Franklin Resources Inc. (BEN) $29.19 2.69%
Wynn Resorts Ltd. (WYNN) $111.61 2.52%
Expedia Group Inc. (EXPE) $118.91 2.47%

S&P 500 - Fallers

Progressive Corp. (PGR) $120.36 -8.89%
Allstate Corp (The) (ALL) $105.70 -1.77%
Carnival Corp. (CCL) $17.90 -1.76%
Genuine Parts Co. (GPC) $166.87 -1.70%
Crown Castle International (CCI) $114.85 -1.37%
Mid Amer Apt Commun (MAA) $155.13 -1.36%
Exxon Mobil Corp. (XOM) $105.10 -1.31%
W.W. Grainger Inc. (GWW) $767.49 -1.26%
Dish Network Corp. (DISH) $7.14 -1.18%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $479.17 -1.01%

Nasdaq 100 - Risers

JD.com, Inc. (JD) $38.69 3.42%
Alphabet Inc. Class A (GOOGL) $122.46 2.97%
Alphabet Inc. Class C (GOOG) $123.02 2.84%
Applied Materials Inc. (AMAT) $142.79 2.81%
Asml Holdings N.V. (ASML) $744.87 2.76%
Wynn Resorts Ltd. (WYNN) $111.61 2.52%
Expedia Group Inc. (EXPE) $118.91 2.47%
Lam Research Corp. (LRCX) $637.42 2.38%
Cadence Design Systems Inc. (CDNS) $237.98 2.25%
Nvidia Corp. (NVDA) $448.78 2.22%

Nasdaq 100 - Fallers

Dish Network Corp. (DISH) $7.14 -1.18%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $479.17 -1.01%
T-Mobile Us, Inc. (TMUS) $139.54 -0.96%
Fastenal Co. (FAST) $58.18 -0.94%
American Airlines Group (AAL) $18.43 -0.73%
O'Reilly Automotive Inc. (ORLY) $964.77 -0.46%
Incyte Corp. (INCY) $62.45 -0.32%
Costco Wholesale Corp. (COST) $536.74 -0.23%
Dollar Tree Inc (DLTR) $147.41 -0.17%
Charter Communications Inc. (CHTR) $382.17 -0.14%