Stock Market Today: Markets Set Fresh Highs as CPI, Earnings Loom
Stocks wavered on light volume ahead of a busy week for economic news and corporate earnings.
Stocks set fresh highs as market participants awaited a key update on inflation, commentary from Federal Reserve Chair Jerome Powell and the start of second-quarter earnings season later this week – but lost momentum as the session wore on.
Two of the three main benchmarks managed to finish the session at fresh highs, however. By the closing bell, the broader S&P 500 added 0.1% to 5,572, while the tech-heavy Nasdaq Composite rose 0.3% to 18,403. The blue-chip Dow Jones Industrial Average, however, slipped 0.08% to end at 39,344.
Traders and investors, coming back from a holiday weekend, may be forgiven if they had their minds on other things. After all, the economic calendar and earnings calendar are full.
Sign up for Kiplinger’s Free E-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.
By the closing bell, stocks were mixed. The broader S&P 500 added 0.1% to 5,572, while the tech-heavy Nasdaq rose 0.3% to 18,403. The blue-chip Dow Jones Industrial Average, however, slipped 0.08% to end at 39,344.
Econ data, earnings on tap
Fed Chief Powell will deliver his semiannual testimony on Capitol Hill tomorrow, visiting the Senate on Tuesday and then appearing before the House on Wednesday. The Fed chair will face questions about the central bank's timeline for interest rate cuts, inflation and the rising unemployment rate seen in the June Jobs report.
Almost as if on cue, on Thursday all eyes will be on the next CPI report. Markets desperately want the Fed to enact its first quarter-point cut to the short-term federal funds rate sooner rather than later. A string of sticky inflation readings has complicated the Fed's calculus, however, and that's put the June CPI report very much in the spotlight.
According to the Federal Reserve Bank of Cleveland, annual headline inflation is forecast to increase by 3.1%, down from the 3.3% rate seen in the May CPI report. On a monthly basis, June inflation is forecast to rise 0.1%, or essentially unchanged from the prior month. June's core CPI, which excludes volatile food and energy prices, is expected to increase 3.5% annually and 0.3% on a monthly basis.
On the earnings front, the tempo should pick up on Thursday when Delta Air Lines (DAL) reports ahead of the opening bell. Morgan Stanley analyst Ravi Shanker says that DAL is one of the "cleanest stories" in airlines right now, citing Delta's outsized exposure to corporate travel vs peers. The analyst rates DAL at Overweight (the equivalent of Buy), calling it a "top pick."
On Friday, JPMorgan Chase (JPM), the nation's biggest bank by assets, is slated to post results, as is Citigroup (C). Jefferies analyst Ken Usdin, who rates JPM at Buy notes that loan growth for many banks remains sluggish due to high interest rates, which could continue to weigh on net interest income (NII) in the near term.
Corning stock soars on outlook
Corning (GLW) was the S&P 500's biggest gainer today, rising 12% to close at $43.05. The tech company raised its second-quarter guidance for core sales and core earnings per share. Corning cited "strong adoption of new optical connectivity products" for generative AI as the reason for the good news.
GLW stock has been a long-time market laggard, but excitement about all things AI has it beating the market by a wide margin in 2024.
For the year-to-date through July 5, GLW generated a total return of 28% vs 18% for the S&P 500, according to data from YCharts. Over the past 52 weeks, however, GLW lags the broader market by about 13 percentage points.
Related content
- How to Find the Best Small-Cap Stocks to Buy
- Best Dividend Stocks to Buy for Dependable Dividend Growth
- If You'd Put $1,000 Into Nvidia Stock 20 Years Ago, Here's What You'd Have Today
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.
A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.
-
Setting Objective Criteria for Employee Bonuses Aligned With Company Goals
When employees win, the company wins.
By Stephen Nalley Published
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and More
What is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
By Emma Patch Published
-
Potential Ripple Effects of Taxing Unrealized Capital Gains
The proposed tax on unrealized gains would be limited to those with a net worth above $100 million, but some see a broad impact on markets and businesses.
By Brian Skrobonja, Chartered Financial Consultant (ChFC®) Published
-
Succession Musts: Thoughtful Planning and Frank Discussions
When it comes to passing on the family business, you don't want anyone to be surprised about who will control or inherit the business after the owner's death.
By David Handler, J.D. Published
-
How to Navigate Finances as a Blended Family
If you’re planning to become part of a blended family, consider these financial issues as you and your spouse start a new life.
By Ella Vincent Published
-
Here's How to Find Your Way Out of the Inherited IRA Maze
To navigate complex rules on inherited IRAs and RMDs, start by breaking down key terms and common scenarios. A clearer picture of your next steps will emerge.
By Evan T. Beach, CFP®, AWMA® Published
-
Stock Market Today: Stocks Rally on Strong Netflix Earnings
Mega-cap tech leads the charge as markets rise for a sixth straight week.
By Dan Burrows Published
-
Why American Express Earnings Have the Dow Stock Lower
American Express is the worst Dow Jones stock Friday after the payments giant reported a top-line miss in its third quarter. Here's what you need to know.
By Joey Solitro Published
-
CVS Stock Falls After Karen Lynch Ouster: What to Know
CVS stock is lower Friday after the embattled healthcare company said Karen Lynch is out as CEO, effective immediately
By Joey Solitro Published
-
Netflix Stock Jumps to the Top of the S&P 500 After Earnings. Here's Why
Netflix stock is spiking Friday after the streaming giant beat third-quarter expectations and gave an upbeat fourth-quarter outlook.
By Joey Solitro Published