US open: S & P 500 higher for a fifth day despite inflation miss
Wall Street is edging higher on the back of generally upbeat readings on the economy and ahead of the release of the all-important monthly US jobs report which was due out on the next day.
Nevertheless, readings on a key inflation index - the central bank's preferred gauge no less - underwhelmend most analysts on the Street, with potential implications for the monetary policy outlook.
The year-on-year rate of gains in the 'core' deflator for personal consumption expenditures slipped from 1.5% in June to 1.4% for last month.
Against that backdrop, as of 1501 BST the Dow Jones Industrial Average was ahead by 0.40% or 88.32 points to 21,981, alongside a 0.51% or 12.45 points rise to 2,470 while the Nasdaq Composite was rising by 0.55% or 35.0 points to 6,402.
Ahead of Thursday's PCE data, Craig Erlam, senior market analyst at Oanda, told clients: "With earnings remaining subdued – albeit on a slightly positive trajectory this year – I’m not sure we’re seeing enough to convince already uncertain policy makers that the current pace of tightening is appropriate. The December meeting – the most likely timing for the final rate hike this year – is fast approaching and without an improvement in the inflation and income data soon, it may well pass with rates unchanged and expectations going forward much lower."
Unsurprisingly, while the US dollar spot index was edging up by 0.20% to 93.07, the yield on the benchmark 10-year US Treasury note was off by one basis point to 2.13% on the heels of the PCE figures.
In parallel, according to the CME's Fed Watch tool Fed funds traders were pricing in just 36.4% odds of another 25 basis point rate hike by the central bank before the year was out.
From a sector standpoint, the best performance was being seen in the following industry groups: Biotechnology (2.29%), Industrial suppliers (1.45%) and Automobiles (1.41%).
Also on the economic front, Market News International's Chicago purchasing mangers' index for August printed at 58.9, pointing to unchanged levels of activity in that area of the country. That was slightly ahead of forecasts for a dip to 58.3.
The National Association of Realtors' pending home sales index for July dropped by 0.8% on the month (consensus: 0.3%).
Initial US unemployment claims for the week ending on 31 August rose by 1,000 to 236,000 (consensus: 235,000).
Commenting on the latest claims figures, Michael Gapen at Barclays Research said: "we caution against ignoring the underlying signal: stability in claims near recovery-level lows, in our view, signals that the recent trend of solid employment gains and modest above-trend growth in activity is likely to continue."
After the deluge of data on Thursday, the next big focus will be Friday's non-farm payrolls report as investors look for clues on hiring, wages and potential inflation pressures.
Shares of Campbell Soup were on the backfoot after the New Jersey-based outfit posted a weaker than expected bottom-line amid falling sales.
Dollar General was also moving lower as investors marked down its shares after the discount retailer guided towards full-year earnings per share of between $4.35 to $4.50 (consensus: $4.50).
Dow Jones - Risers
Pfizer Inc. (PFE) $33.96 1.51%
General Electric Co. (GE) $24.58 1.24%
E.I. du Pont de Nemours and Co. (DD) $84.05 1.03%
Unitedhealth Group Inc. (UNH) $197.77 0.96%
Merck & Co. Inc. (MRK) $63.69 0.90%
Microsoft Corp. (MSFT) $74.61 0.81%
Johnson & Johnson (JNJ) $132.02 0.72%
International Business Machines Corp. (IBM) $143.47 0.64%
Intel Corp. (INTC) $35.08 0.53%
Cisco Systems Inc. (CSCO) $32.15 0.50%
Dow Jones - Fallers
Walt Disney Co. (DIS) $101.83 -1.01%
Visa Inc. (V) $103.39 -0.33%
Travelers Company Inc. (TRV) $121.53 -0.23%
United Technologies Corp. (UTX) $119.36 -0.20%
Boeing Co. (BA) $240.08 -0.16%
JP Morgan Chase & Co. (JPM) $91.20 -0.12%
3M Co. (MMM) $203.50 -0.09%
Verizon Communications Inc. (VZ) $48.13 0.01%
Wal-Mart Stores Inc. (WMT) $78.56 0.03%
Apple Inc. (AAPL) $163.59 0.15%
S&P 500 - Risers
Mallinckrodt Plc Ordinary Shares (MNK) $41.15 4.52%
Southwestern Energy Co. (SWN) $5.47 3.11%
Gilead Sciences Inc. (GILD) $83.54 2.84%
Marathon Oil Corp. (MRO) $11.20 2.75%
Allergan plc (AGN) $229.90 2.70%
Endo International Plc (ENDP) $8.78 2.69%
AutoNation Inc. (AN) $44.62 2.62%
Tenet Healthcare Corp. (THC) $17.66 2.61%
Newfield Exploration Co (NFX) $26.17 2.59%
Mylan Inc. (MYL) $31.34 2.45%
S&P 500 - Fallers
Dollar General Corp (DG) $70.53 -8.08%
Campbell Soup Co. (CPB) $47.54 -5.39%
CenturyLink Inc. (CTL) $19.81 -2.94%
Western Digital Corp. (WDC) $88.19 -2.34%
Mondelez International Inc. (MDLZ) $40.92 -1.69%
Dollar Tree Inc (DLTR) $78.42 -1.63%
Archer-Daniels-Midland Co. (ADM) $41.21 -1.55%
Martin Marietta Mtrl (MLM) $210.60 -1.50%
Vulcan Materials Co. (VMC) $120.09 -1.45%
CH Robinson Worldwide Inc (CHRW) $72.04 -1.40%
Nasdaq 100 - Risers
Gilead Sciences Inc. (GILD) $83.54 2.84%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $219.42 2.74%
Mylan Inc. (MYL) $31.34 2.45%
Expedia Inc. (EXPE) $146.80 2.34%
Biogen Inc (BIIB) $310.72 2.29%
Celgene Corp. (CELG) $137.32 2.22%
Wynn Resorts Ltd. (WYNN) $139.05 2.17%
Mercadolibre Inc. (MELI) $251.55 1.95%
Nvidia Corp. (NVDA) $168.75 1.85%
Shire Plc Ads (SHPG) $148.15 1.63%
Nasdaq 100 - Fallers
Ctrip.Com International Ltd. Ads (CTRP) $50.00 -5.16%
Incyte Corp. (INCY) $134.13 -2.99%
Western Digital Corp. (WDC) $88.19 -2.34%
Mondelez International Inc. (MDLZ) $40.92 -1.69%
Dollar Tree Inc (DLTR) $78.42 -1.63%
O'Reilly Automotive Inc. (ORLY) $195.61 -1.25%
Kraft Heinz Co. (KHC) $81.08 -1.04%
Paypal Holdings Inc (PYPL) $61.24 -0.87%
Applied Materials Inc. (AMAT) $45.13 -0.76%
Liberty Global Plc Lilac Class A (LILA) $25.98 -0.65%