US open: Stocks trade higher, Dow briefly crosses 40,000

Wall Street stocks were higher early on Thursday as cooler-than-expected inflation data helped push major indices to fresh record highs.

As of 1545 BST, the Dow Jones Industrial Average was up 0.21% at 39,993.40, while the S&P 500 and Nasdaq Composite both advanced 0.17% to 5,316.91 and 16,770.15, respectively.

The Dow opened 85.40 points higher on Thursday, paring early gains after the blue-chip index crossed the 40,000 point threshold for the first time in its history.

All three major averages were at record highs as last month's CPI, a broad measure of how much goods and services cost at the cash register, increased 0.3% month-on-month, slightly below estimates for a reading of 0.4%. However, consumer prices grew 3.4% year-on-year, well and truly above the Federal Reserve's 2% target.

On the macro front, US building permits fell by 3% to 1.44m in April, according to the Census Bureau, the lowest reading since December 2022 and below market expectations of 1.48m, while housing starts rose 5.7% month-on-month to 1.36m, below forecasts of 1.42m as high rates and home prices continued to weigh on home builders.

Elsewhere, US firms continued to hold onto their workers during the latest week. According to the Department of Labor, in seasonally adjusted terms initial unemployment claims fell by 10,000 over the week ending on 11 May. Economists had anticipated a drop to 220,000. The four-week moving average, which aims to strip out week-to-week volatility, meanwhile rose by 2,500 to 217,750.

Moving on, factory activity in the US mid-Atlantic region slowed a tad more than expected in May, the results of a closely-followed survey revealed. The Federal Reserve Bank of Philadelphia's manufacturing sector index slipped from a reading of 15.5 in April to 4.5 for May. Economists had pencilled in a decline to 8.

On another note, the cost of goods purchased overseas jumped last month amid dearer prices for fuel imports. According to the Department of Labor, in seasonally adjusted terms, import prices leapt 0.9% month-on-month (consensus: 0.3%). That was chiefly the result of a 2.4% jump in fuel import prices, while those of non-fuel imports rose by 0.7%. Nonetheless, in year-on-year terms, import prices were up by only 1.1%.

Finally, US industrial production decreased 0.4% year-on-year in April for the first drop in three months, according to the Federal Reserve, while capacity utilisation edged down to 78.4% in April from an upwardly revised 78.5% in March, and in line with market estimates.

In the corporate space, Cisco traded higher on the back of positive results, while retail giant Walmart posted quarterly numbers that came in ahead of estimates thanks to an increased percentage of high-income shoppers and a jump in online sales.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walmart Inc. (WMT) $63.92 6.83%
Boeing Co. (BA) $182.92 3.35%
3M Co. (MMM) $104.26 2.98%
Travelers Company Inc. (TRV) $217.93 1.67%
Unitedhealth Group Inc. (UNH) $523.76 1.20%
Intel Corp. (INTC) $31.62 1.11%
Nike Inc. (NKE) $92.53 0.94%
Walt Disney Co. (DIS) $103.58 0.79%
Procter & Gamble Co. (PG) $167.57 0.64%
Coca-Cola Co. (KO) $63.46 0.52%

Dow Jones - Fallers

Amgen Inc. (AMGN) $312.23 -2.13%
Caterpillar Inc. (CAT) $354.92 -1.42%
Cisco Systems Inc. (CSCO) $49.12 -1.11%
Home Depot Inc. (HD) $345.05 -1.04%
Chevron Corp. (CVX) $161.38 -1.02%
Verizon Communications Inc. (VZ) $40.28 -0.52%
Merck & Co. Inc. (MRK) $131.22 -0.39%
Visa Inc. (V) $280.62 -0.31%
Salesforce.Com Inc. (CRM) $286.67 -0.30%
Goldman Sachs Group Inc. (GS) $466.08 0.00%

S&P 500 - Risers

Walmart Inc. (WMT) $63.92 6.83%
Chubb Corp. (CB) $262.74 3.86%
Dollar General Corp (DG) $146.29 3.71%
Target Corp. (TGT) $162.94 3.45%
Boeing Co. (BA) $182.92 3.35%
3M Co. (MMM) $104.26 2.98%
Dollar Tree Inc (DLTR) $121.76 2.49%
Advanced Micro Devices Inc. (AMD) $163.54 2.42%
Everest Group (EG) $384.05 2.38%
Archer-Daniels-Midland Co. (ADM) $61.47 2.32%

S&P 500 - Fallers

Bread Financial Holdings, Inc. (BFH) $39.85 -5.47%
Martin Marietta Mtrl (MLM) $590.56 -3.61%
United Rentals Inc. (URI) $689.05 -3.27%
Vornado Realty Trust (VNO) $24.74 -2.68%
Deere & Co. (DE) $403.93 -2.44%
Lennar Corp. Class A (LEN) $166.79 -2.38%
Biogen Inc (BIIB) $229.81 -2.34%
CenturyLink Inc. (LUMN) $1.27 -2.31%
Nordstrom Inc. (JWN) $21.02 -2.28%
Vulcan Materials Co. (VMC) $264.34 -2.28%

Nasdaq 100 - Risers

NetEase Inc. Ads (NTES) $104.28 5.59%
Dollar Tree Inc (DLTR) $121.76 2.49%
Cognizant Technology Solutions Corp. (CTSH) $70.23 1.99%
Costco Wholesale Corp. (COST) $801.71 1.86%
Ross Stores Inc. (ROST) $135.34 1.76%
Mercadolibre Inc. (MELI) $1,744.43 1.51%
Intel Corp. (INTC) $31.62 1.11%
Alphabet Inc. Class A (GOOGL) $174.35 1.07%
Vodafone Group Plc ADS (VOD) $9.73 0.99%
Alphabet Inc. Class C (GOOG) $175.59 0.98%

Nasdaq 100 - Fallers

Biogen Inc (BIIB) $229.81 -2.34%
Biomarin Pharmaceutical Inc. (BMRN) $78.52 -2.34%
Amgen Inc. (AMGN) $312.23 -2.13%
American Airlines Group (AAL) $14.69 -1.67%
Baidu Inc. (BIDU) $108.90 -1.67%
Idexx Laboratories Inc. (IDXX) $539.40 -1.67%
PACCAR Inc. (PCAR) $106.60 -1.37%
Take-Two Interactive Software Inc. (TTWO) $146.31 -1.20%
Meta Platforms Inc. (META) $475.79 -1.19%
Cisco Systems Inc. (CSCO) $49.12 -1.11%