Stocks closed higher Tuesday as investors prepared for the latest inflation update and the start of second-quarter earnings season.
But while price action across the major indexes was relatively muted, Activision Blizzard (ATVI) climbed the charts after Microsoft's (MSFT) proposed acquisition of the video game maker cleared a major regulatory hurdle.
Today's gains for the main benchmarks were modest as investors looked ahead to tomorrow morning's release of the June Consumer Price Index (CPI). The Nasdaq Composite added 0.6% to 13,760, the S&P 500 rose 0.7% to 4,439, and the Dow Jones Industrial Average added 0.9% to 34,261.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
Microsoft-Activision merger clears regulatory hurdle
In single-stock news, Activision Blizzard popped 10.0% after a federal judge Tuesday said Microsoft (+0.2%) can proceed with its $69 billion purchase of the Call of Duty maker. The merger has been targeted by the Biden administration on antitrust concerns, with the Federal Trade Commission (FTC) in December suing Microsoft to try and stop the deal. The acquisition is still awaiting regulatory approval in the U.K.
Separately, Microsoft, a Dow stock, also made news by announcing another round of layoffs. While the exact number of job cuts was not disclosed, roughly 300 sales and customer service positions in Washington state were eliminated. In January, MSFT cut 10,000 positions across its global workforce.
Amazon lands on Wells Fargo's "signature picks" list
Amazon.com (AMZN) was another noteworthy mover, gaining 1.3% as the e-commerce site kicked off its annual Amazon Prime Day. The 48-hour sale allows Prime members to get deals on a variety of products.
Additionally, Wells Fargo analyst Ken Gawrelski added AMZN to the research firm's "signature picks" list – a portfolio of 35 high-conviction stock picks. Gawrelski has an Overweight (Buy) rating on AMZN, and expects the stock to benefit from a "multi-year positive revision cycle" in North American retail and "healthy growth resuming at Amazon Web Services" starting in the fourth quarter.
Gawrelski is in good company, too. Of the 54 analysts following AMZN tracked by S&P Global Market Intelligence, 35 say it's a Strong Buy, 16 have it at Buy, two call it a Hold and one has it at Sell. This works out to a Strong Buy recommendation.
PepsiCo, Delta earnings on deck
While second-quarter earnings season unofficially starts Friday with several big banks reporting, there are a pair of notable names on Thursday's earnings calendar, too. Specifically, financial results from both soft drink and snack maker PepsiCo (PEP) and air carrier Delta Air Lines (DAL) will give Wall Street a closer look at consumer spending during a period when inflation eased, even if it still remains well above the Fed's 2% target.
A resilient consumer has helped keep trends "healthy" at PepsiCo's Beverages North America division, says Goldman Sachs analyst Bonnie Herzog. She has a Buy rating on the consumer staples stock.
As for Delta Air Lines, Jefferies analyst Sheila Kahyaoglu says Q2 results "will point to the continued demand strength with pricing firm given continued capacity constraints." The industrial stock "remains our top pick" among airlines thanks in part to "diversified revenue and cash streams."
Related Content
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Crypto Trends to Watch in 2026
Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
