US open: Stocks rally as PPI comes in softer than expected
Wall Street stocks were firmly in the green early on Tuesday as market participants digested another key inflation report.
As of 1530 GMT, the Dow Jones Industrial Average was up 0.97% at 33,861.16, while the S&P 500 advanced 1.63% to 4,021.62 and the Nasdaq Composite came out the gate 2.49% firmer at 11,475.40.
The Dow opened 324.46 points higher on Tuesday, reversing losses recorded in the previous session.
Tuesday's primary focus will be October's producer price index, with the Bureau of Labor Statistics' report for final demand rising 0.2% on a seasonally adjusted basis in October, driven by a 0.6% advance in prices for final demand goods. October's PPI print came in lower than the 0.4% reading expected on the Street, signalling that inflation may be slowing down, and comes hot on the heels of last week's cooler-than-expected consumer price index data.
Elsewhere on the macro front, manufacturing activity in the New York area improved a lot more than expected in November, according to a survey released on Tuesday. The New York Fed's Empire State general business conditions index rose to 4.5 from -9.1 in September. This was well ahead of analysts’ expectations for a reading of -5.0. According to the survey, 33% of respondents reported that conditions had improved over the month, while 29% said they had deteriorated.
Federal Reserve Governor Lisa Cook said on Tuesday that the US central bank remained focussed on addressing inflation that was "much too high". "Monetary policy is, as we all know, a blunt instrument," Cook said. "The focus for the Federal Reserve is on addressing inflation, and we want a sustainable, strong labour market."
Still to come, Michael Barr, vice chair for supervision of the Federal Reserve Board of Governors, will begin to deliver testimony before the Senate committee on banking, housing, and urban affairs at 1500 GMT.
In corporate news, home improvement retailer Home Depot delivered better-than-expected top-line growth and earnings for the third quarter, while discount retail giant Walmart swung to a third-quarter loss but beat expectations for revenue, adjusted profit and same-store sales - and set a much better full-year outlook than anticipated.
Target, Lowe's, Macy's, Kohl's, and Foot Locker will report later in the week.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Walmart Inc. (WMT) $147.75 6.76%
Apple Inc. (AAPL) $153.23 3.33%
Salesforce.Com Inc. (CRM) $163.64 3.14%
Visa Inc. (V) $213.14 3.04%
Intel Corp. (INTC) $31.23 2.89%
Nike Inc. (NKE) $107.38 2.86%
Walgreens Boots Alliance, Inc. (WBA) $41.40 2.12%
Walt Disney Co. (DIS) $96.20 2.04%
Microsoft Corp. (MSFT) $245.77 1.75%
Goldman Sachs Group Inc. (GS) $387.71 1.40%
Dow Jones - Fallers
McDonald's Corp. (MCD) $268.77 -1.29%
Unitedhealth Group Inc. (UNH) $509.31 -0.86%
Travelers Company Inc. (TRV) $181.15 -0.85%
Amgen Inc. (AMGN) $283.94 -0.48%
Merck & Co. Inc. (MRK) $99.96 -0.38%
Honeywell International Inc. (HON) $0.00 0.00%
Dowdupont Inc. (DWDP) $0.00 0.00%
Johnson & Johnson (JNJ) $171.94 0.02%
Chevron Corp. (CVX) $187.07 0.28%
Cisco Systems Inc. (CSCO) $44.87 0.28%
S&P 500 - Risers
Svb Financial Group (SIVB) $239.88 9.16%
Walmart Inc. (WMT) $147.62 6.67%
Carnival Corp. (CCL) $11.29 6.51%
Advanced Micro Devices Inc. (AMD) $78.02 6.11%
Nektar Therapeutics (NKTR) $4.32 5.88%
MGM Resorts International (MGM) $38.94 5.39%
PVH Corp. (PVH) $62.30 5.18%
Coty Inc. Class A (COTY) $7.81 5.11%
QUALCOMM Inc. (QCOM) $126.95 5.09%
Stanley Black & Decker Inc. (SWK) $85.00 4.71%
S&P 500 - Fallers
Albemarle Corp. (ALB) $287.57 -9.10%
Mosaic Company (MOS) $50.56 -4.82%
Capital One Financial Corp. (COF) $106.47 -4.57%
CF Industries Holdings Inc. (CF) $104.32 -3.19%
McKesson Corp. (MCK) $351.69 -2.60%
Coterra Energy Inc. (CTRA) $27.50 -2.26%
Advance Auto Parts (AAP) $180.45 -1.81%
Constellation Brands Inc. Class A (STZ) $240.16 -1.76%
Regeneron Pharmaceuticals Inc. (REGN) $729.04 -1.75%
O'Reilly Automotive Inc. (ORLY) $811.69 -1.60%
Nasdaq 100 - Risers
Qurate Retail Inc. (QRTEA) $2.36 17.16%
Trip.com Group Limited (TCOM) $29.76 7.36%
JD.com, Inc. (JD) $54.56 7.30%
NetEase Inc. Ads (NTES) $69.34 6.28%
Baidu Inc. (BIDU) $97.15 6.23%
Mercadolibre Inc. (MELI) $1,012.79 5.55%
QUALCOMM Inc. (QCOM) $126.95 5.09%
Workday, Inc. (WDAY) $160.50 4.64%
Asml Holdings N.V. (ASML) $600.56 3.94%
DENTSPLY Sirona Inc. (XRAY) $31.54 3.92%
Nasdaq 100 - Fallers
Vodafone Group Plc ADS (VOD) $11.63 -5.52%
Regeneron Pharmaceuticals Inc. (REGN) $729.04 -1.75%
O'Reilly Automotive Inc. (ORLY) $811.69 -1.60%
Vertex Pharmaceuticals Inc. (VRTX) $303.26 -0.91%
Incyte Corp. (INCY) $76.62 -0.61%
Gen Digital Inc. (GEN) $22.60 -0.44%
Fastenal Co. (FAST) $51.55 -0.25%
Amgen Inc. (AMGN) $285.10 -0.07%
Xilinx Inc. (XLNX) $0.00 0.00%
Alexion Pharmaceuticals Inc. (ALXN) $0.00 0.00%