US open: Stocks trade higher following July CPI reading

dl exchange place wall st street pl new york city nyc ny nyse stock exchange dow jones sp nasdaq finance dollar dollars us usa united states of america — Exchange PlaceSharecast photo / Josh White

Wall Street stocks were trading higher early on Wednesday as market participants digested last month's CPI data.

As of 1515 BST, the Dow Jones Industrial Average was up 1.53% at 33,276.87, while the S&P 500 was 1.57% firmer at 4,187.22 and the Nasdaq Composite came out the gate 1.92% stronger at 12,734.21.

The Dow opened 502.46 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.

Still to come, Walt Disney will update on its most recent trading quarter after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $188.43 3.40%
American Express Co. (AXP) $163.42 2.91%
Dow Chemical Co. (DOW) $54.23 2.86%
JP Morgan Chase & Co. (JPM) $118.57 2.76%
Goldman Sachs Group Inc. (GS) $345.76 2.71%
Nike Inc. (NKE) $112.85 2.49%
Walt Disney Co. (DIS) $110.61 2.29%
Microsoft Corp. (MSFT) $288.58 2.23%
Cisco Systems Inc. (CSCO) $45.90 2.18%
Apple Inc. (AAPL) $168.38 2.10%