Monday’s Wall Street stock market closed in a mixed bag as investors got ready for a barrage of U.S. economic data this week, particularly consumer prices, which will be used to determine the direction of Federal Reserve monetary policy. Falling was the Dow Jones Industrial Average.
Both the tech-heavy Nasdaq Composite Index and the benchmark S&P 500 index ended the day higher. To gauge consumer demand, investors are waiting for Wednesday’s store earnings report and the U.S. consumer price index data.
Increase In Inflation
According to the CPI figures, headline inflation increased by 0.2% in July compared to June, but remained constant at 3% annually. Money markets are similarly supposing that U.S. interest rates would be lowered by 25 or 50 basis points in September, with a total lowering of 100 bps.
Thursday’s figures for July retail sales in the United States are probably going to show modest rise, and investors anticipate that any weakness in the data might rekindle concerns about a slowdown in consumer spending and a possible recession.
Later this week, Walmart and Home Depot are expected to release their earnings. James Abate, chief investment officer at Center Asset Management in New York, stated, “Retail earnings are another indication on the health of the consumer, particularly in light of the unemployment rate ticking up in the most recent report.”
Increase Value of Starbucks
“One thing that could be a significant disappointment to the market is if the CPI number comes out higher than consensus.” The Nasdaq Composite gained 35.71 points, or 0.21%, to 16,781.01, while the S&P 500 gained 1.63 points, or 0.03%, to finish at 5,345.79 points, according to early figures. At 39,360.54, the Dow Jones Industrial Average dropped 137.00 points, or 0.35%.
Starbucks increased in value following rumors that activist investor Starboard Value, which owns stock in the massive coffee chain, wants the business to raise its pricing.
Following Scotiabank’s $2.8 billion all-stock acquisition of a minority position in the U.S. regional lender, KeyCorp saw a sharp increase in value. Hawaiian Electric’s stock dropped precipitously following the utility company’s “going concern” concerns.
