Stocks jumped out of the gate Thursday, building on Wednesday's inflation-fueled gains. However, unlike yesterday where markets rallied hard into the close, today's upside action stalled out as the session wore on, as momentum in tech stocks faded.
Today's positive start came courtesy of a number of headlines, including a strong earnings report from Walt Disney (DIS). The entertainment and media conglomerate last night reported higher-than-expected earnings and revenue for its fiscal third quarter. Disney also added 14.4 million subscribers to its Disney Plus streaming service over the three-month period, more than the 10 million analysts were expecting. DIS jumped 4.7% after earnings, easily making it the top-performing Dow Jones stock today.
On the economic front, the Bureau of Labor Statistics this morning said U.S. producer prices were up 9.8% annually in July – well below June's 11.3% rise and the lowest year-over-year increase since October 2021. Month-over-month, the producer price index was down 0.5%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Inflationary pressures are clearly easing, but a lot of that decline is dependent if oil prices continue to grind lower," says Edward Moya, senior market strategist at currency data provider OANDA. "The risk of higher oil prices going into year end are elevated, so this moderation in inflationary pressures might not last."
Oil prices also were higher today, with U.S. crude futures gaining 2.6% to settle at $94.34 per barrel. This fueled a major rally in the energy sector (+3.5%), while healthcare stocks (-0.7%) lagged.
As for the broader indexes, the Dow Jones Industrial Average rose 0.1% to 33,336 thanks to a Disney-related boost. However, the S&P 500 Index (-0.1% to 4,207) and the Nasdaq Composite (-0.6% at 12,779) ended with modest losses. All three indexes had been up more than 1% earlier in the session.
Other news in the stock market today:
- The small-cap Russell 2000 added 0.3% to 1,975.
- Gold futures fell 0.4% to finish at $1,807.20 an ounce.
- Bitcoin jumped 2.3% to $24,208.82. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Six Flags (SIX) plunged 18.2% after the theme park operator reported earnings. In its second quarter, earnings per share fell 35% year-over-year to 53 cents, while revenue was down 5% to $435 million. Analysts, by comparison, were expecting earnings of $1.01 per share on $519 million in revenue. "We would sit on the sidelines until SIX can prove it can grow its top and bottom line with its new premium strategy especially as the consumer slows spending on discretionary services as inflation boost consumer debt and lowers savings," says CFRA Research analyst Zachary Warring, who lowered his rating on SIX to Hold from Buy.
- Several energy stocks jumped alongside oil prices today. Devon Energy (DVN, +7.3), Marathon Oil (MRO, +7.0%) and Pioneer Natural Resources (PXD, +4.9%) were just a few of the day's big winners.
The Best Stocks Since the Bear-Market Bottom
Have stocks bottomed? That's a popular question circling Wall Street these days, with the S&P 500 fresh off its best July since FDR was president and the Nasdaq up roughly 20% from its late June lows.
"We are not 100% in that camp," says Victoria Fernandez, chief market strategist at investment management firm Crossmark Global Investments. "Bear-market rallies and the start of new bull markets look similar but we need to see the broad-based momentum to believe this is more than a shorter-term rally."
Still, given the Nasdaq's impressive run in recent weeks, many in the financial media are proclaiming the start of a new bull market for the tech-heavy index (although the bull won't be confirmed until the index takes out its previous all-time high of 16,057 set on Nov. 19, 2021).
No matter which side you're on, after months and months of extreme stock market volatility, "there's no harm in prematurely celebrating the beginning of a new bull market," says Kiplinger's Dan Burrows. And to mark the moment, we uncovered the S&P 500's top-performing stocks since the bear-market bottom on June 16. Take a look.
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement SpendingFollow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market TodayApple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market TodayThe August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market TodayThe S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
