As the week kicks off, US stocks opened higher on Tuesday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all showing gains. This comes as Wall Street absorbs the latest inflation data and eagerly anticipates updates on consumer prices.
In July, US producer prices only rose by 0.1% month-over-month, a welcome surprise that was lower than economist forecasts. The Producer Price Index (PPI) also saw a year-over-year increase of 2.2%, in alignment with the Federal Reserve’s target for inflation. This data offers a glimpse into where consumer prices may be headed and sets the stage for Wednesday’s report on consumer prices.
While the markets have experienced volatility in recent weeks, Monday saw the S&P 500 and Nasdaq inching closer to previous highs after a brief pullback. One notable earnings report came from Home Depot (HD), which lowered its forecast for comparable same-store sales for the remainder of the year.
In individual stock movements, Starbucks (SBUX) caught investors off guard by announcing a new CEO, Brian Niccol, who will be transitioning from Chipotle (CMG). This shake-up resulted in a surge for Starbucks shares and a drop for Chipotle stocks.
Nvidia (NVDA) also showed strength, with a 3% increase in early trading following positive analyst sentiments, which named it a top “rebound” stock. The upcoming retail sales report and Wednesday’s data on consumer prices will likely steer market sentiment for the remainder of the week.
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