Today's producer price index (PPI), which measures what businesses are charging suppliers for goods, confirmed what Wednesday's consumer price index (CPI) did – that inflation continued to ease in June.
The data were enough to keep the momentum going in stocks, with all three major indexes closing higher for a fourth straight day.
Ahead of the opening bell, the Bureau of Labor Statistics said the June PPI rose 0.1% on both a monthly and yearly basis in June, beating economists' estimates. Core PPI, which excludes volatile food and energy prices, also beat forecasts, rising 0.1% month-over-month and 2.6% year-over-year.
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.
Separately, data from the Labor Department showed initial jobless claims fell 12,000 last week to 237,000. Continuing claims rose by 64,431 to 1.76 million.
"This morning's Producer Price Index is a sequel to yesterday's Consumer Price Index showing that inflation is continuing to weaken, which is sustaining an already strong equity rally," says José Torres, senior economist at Interactive Brokers. Additionally, this morning's jobs data "imply that the Federal Reserve can potentially continue to tighten monetary policy without significantly weakening the labor market."
PepsiCo pops after earnings
In single-stock news, Delta Air Lines (DAL) was up nearly 4% at its intraday high after the air carrier reported higher-than-expected earnings of $2.68 per share. Revenue of $15.6 billion also topped forecasts. Additionally, the company raised its full-year outlook, citing "robust" travel demand. Still, DAL finished the day down 0.5%.
PepsiCo (PEP) was also in the earnings spotlight, climbing 2.4% after its results. The soft drink and snack maker's second-quarter earnings of $2.09 per share on $22.3 billion in revenue handily beat analysts' estimates. It also lifted its fiscal 2023 guidance for the second straight quarter.
Big banks are next up on the earnings calendar, with JPMorgan Chase (JPM) and Wells Fargo (WFC) among those reporting tomorrow morning.
As for the major indexes, the Nasdaq Composite popped 1.6% to 14,138, the S&P 500 gained 0.9% to 4,510, and the Dow Jones Industrial Average rose 0.1% to 34,395.
IBM stock's disappoints long-term investors
We talk a lot about stock picking in this space. Sometimes we do so by taking a closer look at the stocks Warren Buffett is buying or selling in the Berkshire Hathaway equity portfolio. In other cases we dive into regulatory filings to see which blue chip stocks are being scooped up by hedge funds.
We've also crunched the numbers on several individual stocks to see which ones have been rock-solid investment ideas over the last two decades. Not surprisingly, several mega-cap tech stocks make the list, including Nvidia (NVDA), Apple (AAPL) and Microsoft (MSFT).
But on the other end of the scale are stocks that have been massive disappointments for investors. Take, for instance, International Business Machines (IBM). The once venerable industry leader has been a market laggard for some time now, and turned in a dismal 20-year return for investors. Just how bad? Dan Burrows, senior investing writer at Kiplinger.com, does the math on IBM stock.
Related Content
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Dow Adds 646 Points, Hits New Highs: Stock Market Today
It was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
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.
-
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.
