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.
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.
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
-
Do You Really Need That Wine Cellar?Home Features Wine cellars are a popular feature in high-end houses. Will installing one in your home increase its value, or would you be better off with a cheaper solution?
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Nasdaq Outperforms as Big Tech RalliesThe Dow Jones Industrial Average closed lower for a second day as Amgen and Merck fell.
-
Stock Market Today: UnitedHealth Drags on Dow After CEO SplitsUNH created headwinds for the price-weighted Dow on news that its embattled CEO, Andrew Witty, is stepping down.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade DealThe two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: Investors Weigh Weekend NegotiationsInvestors, traders and speculators will look to Switzerland for answers about the most compelling issue confronting global markets.
-
Stock Market Today: Stocks Rise on Trump Trade DealThe U.S. and the U.K. agreed to a trade agreement that includes lower automobile tariffs.
