Wall St indexes rise as PPI data keeps smaller rate cut in view
Fixes headline to match paragraph 1
August producer prices slightly above estimates
Moderna tumbles after dour FY25 revenue forecast
Indexes up: Dow 0.40%, S&P 500 up 0.70%, Nasdaq up 1.04%
By Sinéad Carew and Shashwat Chauhan
Sept 12 (Reuters) -Wall Street's main indexes rose on Thursday after higher-than-expected producer prices data reinforced expectations for a 25-basis point rate cut by the Federal Reserve, while Moderna slumped following a downbeat revenue forecast.
The producer price index (PPI) for final demand rose 0.2% in August, compared with estimates for0.1% growth. The core number, which strips out volatile food and energy prices, rose 0.3%, higher than the 0.2% forecast.
Separately, initial claims for state unemployment benefits stood at 230,000 for the week ended Sept. 7, in line with estimates.
"You continue to get data indicating that inflation is cooling with the producer prices numbers. Also what we've seen in the last couple of days is a willingness of investors to come in on declines," said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. "Investors remember those significant reversals so today there's less inclination to go against the buying momentum."
A string of weakening employment and economic growth data over the past few weeks had fueled some bets on a larger-than-usual 50-bps interest rate cut by the Fed.
Those expectations faded after Wednesday's inflation report to a 75% chance the U.S. central bank cuts rates by just 25 bps when it meets on Sept. 17-18, CME's FedWatch Tool showed. It would be the first rate cut since March 2020.
As of 2:11 p.m. ET the Dow Jones Industrial Average .DJI rose 162.35 points, or 0.40%, to 41,024.06, the S&P 500 .SPX gained 39.05 points, or 0.70%, at 5,593.18 and the Nasdaq Composite .IXIC climbed 180.07 points, or 1.04%, to 17,575.60.
Most of the S&P 500 sectors were higher, led by communication services .SPLRCL, which rose1.8%. The weakest sector was real estate .SPLRCR, down 0.04%.
The more economically sensitive small-cap Russell 2000 .RUT meanwhile outperformed, rallying 1.4%.
"There's probably some bargain hunting. Small caps is an area that's lagged all year and they'll tend to be rate sensitive so if rates are coming down that might have a decent impact," said Carlson.
Meanwhile, Moderna's MRNA.O stock wasdown 11.5% after hitting itslowest intraday level since November. It wasthe biggest decliner on the S&P 500 after the vaccine maker forecast sales of $2.5 billion to $3.5 billion next year, below analysts' estimates.
Micron Technology MU.O dropped 3% after a report that Exane BNP Paribas downgraded the chipmaker's shares to "underperform" from "outperform."
Kroger KR.N gained 6% after the supermarket chain beat second-quarter estimates and raised the lower end of its annual sales forecast.
Shares of gold miners jumped as spot gold XAU= hit a record high, with the Arca Gold BUGS index .HUI up 6.3%.
Shares in Warner Bros Discovery WBD.O rose8.9% on newsthat Charter Communications CHTR.O would provide an ad-supported version of Warner's streaming services Max and Discovery+. Charter's shares rose 3%.
Advancing issues outnumbered decliners by a 3.39-to-1 ratio on the NYSE where there were 333 new highs and 39 new lows.
On the Nasdaq, 2,660 stocks rose and 1,461 fell as advancing issues outnumbered decliners by a 1.82-to-1 ratio. The S&P 500 posted 34 new 52-week highs and no new lows while the Nasdaq Composite recorded 68 new highs and 69 new lows.
Reporting by Sinéad Carew in New York, Shashwat Chauhan and Lisa Mattackal in Bengaluru; Editing by Maju Samuel, Shounak Dasgupta and Richard Chang
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
