Stock market today: Dow gains as Fed's favored inflation gauge cools – Yahoo Finance

September 27, 2024

Stocks traded mixed on Friday as investors accepted an inflation report seen as key to the Federal Reserve's next rate cut decision.

This week, the S&P 500 (^GSPC) rose 0.1% after setting its third all-time high. The Dow Jones Industrial Average (^DJI) rose 0.7%, but the tech-heavy Nasdaq Composite Index (^IXIC) was just below the flat line.

August readings of the personal consumption expenditures (PCE) index, the Fed's preferred inflation measure, showed continued cooling in price pressures. The “core” PCE index, which policymakers pay most attention to, rose 0.1% from the previous month, lower than Wall Street expectations.

PCE's numbers appeared to be a big bet that the Fed would cut rates even more significantly next month. More than half of traders (approximately 52%) Please look forward to it now 50 basis points reduction.

read more: Impact of Fed Rate Cuts on Bank Accounts, CDs, Loans, and Credit Cards

Stock indexes are on track for weekly gains as confidence in the economy returns to the market. Robust GDP data and continued cooling in inflation are increasing confidence that the Fed can pull off a “soft landing” as it embarks on its rate-cutting campaign.

Elsewhere, China added to its suite of stimulus measures, boosting markets again. Mainland stocks posted their biggest weekly gain since 2008, and luxury goods stocks are on track for their best week in years as hopes for Chinese demand rise. Meanwhile, the stock prices of Alibaba (BABA, 9988.HK), JD (JD, 9618.HK), and Meituan (3690.HK, MPNGY) soared amid a buying offensive.

In other individual stocks, wholesaler giant Costco (COST)'s stock price fell in morning trading after its sales fell short of Wall Street's expectations.

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Friday, September 27, 2024, 8:11am MST

Expectations in the market for further significant interest rate cuts rise

Recent encouraging observations on the Fed's recommended inflation measure have changed market expectations about the possibility of another 50 basis point rate cut.

The Personal Consumption Expenditure (PCE) index on Friday showed that price growth in August was slower than expected on a monthly basis. This has influenced the debate over the Fed's next rate decision, as central bankers continue to wind down the tightening cycle.

After Friday's inflation announcement, investors were pricing in a 54% chance of a 50 basis point rate cut at the Fed's November policy meeting, up from a 50% chance a week ago. By CME FedWatch tool.

If inflation continues to show signs of easing, Fed officials will be under pressure to accelerate their rate-cutting plans because higher rates could threaten the labor market and lead to an economic slowdown that officials have so far avoided. likely to receive it.
Friday, September 27, 2024, 7:17am MST

Costco's stock price is down, but gold bars are selling like hotcakes

Costco (COST) is dumping tons of gold bars as the price of precious metals continues to soar, Yahoo Finance reported. brooke dipalma and Brian Sozzi.

The wholesale giant's chief financial officer, Gary Millerchip, told analysts on an earnings call Thursday night that gold sales increased by “double digits” in the most recent quarter. Millerchip added that gold was a “meaningful tailwind” for e-commerce sales in the quarter.

Costco will begin selling gold bars in the fall of 2023. Wells Fargo analysts Estimation The company moves between $100 million and $200 million worth of bars every month.

above its websiteCostco sells 1 oz gold bars for $2,679.99. You must become a member to purchase bullion. It is also non-refundable and has a total limit of 5 units per membership.

Despite the big money sales, Costco's Bread and Butter still sells items like bread and butter to cost-conscious shoppers.

Same-store sales growth in the fiscal fourth quarter was 6.9%, compared to Wall Street expectations of 6.4%. E-commerce sales increased 19.5%, slightly below the 19.63% growth expected by analysts.

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Friday, September 27, 2024, 6:33am MST

Stocks open higher as inflation indicators point to further cooling

Stocks continued to perform well on Friday morning as investors welcomed new updates indicating easing price pressures. The encouraging inflation report raised market expectations that the Fed would cut rates even further at its next policy meeting in November.

This week, the S&P 500 (^GSPC) rose 0.1% after setting its third all-time high. The Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite Index (^IXIC) each rose about 0.2%.
Friday, September 27, 2024, 6:30am MST

Intel shares rise on news of CHIPS Act funding talks and Arm acquisition report

Intel (INTC) stock rose 1.8% in early trading Friday, according to the Financial Times. reported The chipmaker and the U.S. government plan to close on $8.5 billion in CHIPS Act funding for the company by the end of the year.

Separately, Bloomberg reported that Arm Holdings (ARM) has expressed interest in acquiring Intel's products business.

Possible offer from British chip design company Arm google (GOOG) and apple (APPL) has been reprimanded by Intel, anonymous sources told Bloomberg.

Intel is also reportedly being approached by Qualcomm (QCOM) and investment management company Apollo to acquire the company in its entirety. Intel shares rose over the past week on the news, but are still down more than 50% since the beginning of the year. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

rival Qualcomm proposes friendly acquisitionaccording to the Wall Street Journal, but such a deal could face pushback from antitrust regulators. Analysts also question whether the Qualcomm acquisition makes financial sense for Qualcomm or Intel.
Friday, September 27, 2024, 5:44am MST

Fed-recommended inflation measures show lower price increases than Wall Street expected in August

The latest measure of inflation recommended by the Federal Reserve showed that prices rose at a slower pace than expected on a monthly basis in August.

The “core” personal consumption expenditure (PCE) index, which excludes food and energy costs, rose 0.1% month-on-month during August. The measure, closely watched by the Fed, was lower than Wall Street's expectations of 0.2% and July's 0.2%.

Prices rose 2.7% in August over the same month last year, in line with Wall Street expectations and higher than July's 2.6%.

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