US close: Stocks higher following CPI data

dl nyse new york stock exchange wall st street city finance dow jones nasdaq sp finance dollar dollars us usa united states of america 2 — New York Stock ExchangeSharecast photo / Josh White

Wall Street stocks closed sharply higher on Wednesday as market participants digested last month's CPI data.

At the close, the Dow Jones Industrial Average was up 1.63% at 33,309.51, while the S&P 500 was 2.13% firmer at 4,210.24 and the Nasdaq Composite saw out the session 2.89% stronger at 12,854.80.

The Dow closed 535.10 points higher on Wednesday, erasing losses recorded in the previous session as market participants digested more second-quarter earnings.

Wednesday's primary focus was data that showed US inflation slowed more than expected in July, according to the Bureau of Labor Statistics, advancing at an 8.5% clip in July, down from June's 40-year high of 9.1%.

Compared to the previous month rate, CPI was unchanged after rising at a 17-year high print of 1.3%, below forecasts of 0.2%. Core inflation remained steady at 5.9%, beating market expectations for a reading of 6.1% and going a ways to indicate that inflation may have finally peaked.

Elsewhere on the macro front, US mortgage applications edged 0.2% higher in the week ended 7 August, according to the Mortgage Bankers Association, amid a 3.5% increase in refinancing and a 1.4% drop in purchases.

Finally, wholesale inventories in the US increased 1.8% month-on-month earlier to $895.4bn in June, slightly below initial estimates for a reading of a 1.9% rise and following a 1.9% gain in May. June's increase marked the 23rd straight month of gains, with durable goods stocks up 2% and nondurables up 1.4%.

In terms of earnings, Jack in the Box Q3 earnings missed estimates, with a quarterly EPS of $1.38, while Wendy's reported a squeeze from inflation throughout the quarter as margins fell short of expectations.

After the close, Walt Disney revealed that subscriber growth had blown past estimates, helping the entertainment giant best expectations for both the top and bottom line.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walt Disney Co. (DIS) $112.43 3.98%
Salesforce.Com Inc. (CRM) $188.61 3.50%
Goldman Sachs Group Inc. (GS) $347.91 3.35%
Nike Inc. (NKE) $113.14 2.75%
Apple Inc. (AAPL) $169.24 2.62%
JP Morgan Chase & Co. (JPM) $118.39 2.61%
Boeing Co. (BA) $169.02 2.53%
Caterpillar Inc. (CAT) $190.73 2.52%
Dow Chemical Co. (DOW) $54.04 2.50%
Intel Corp. (INTC) $35.37 2.46%