Investors unpacked CPI and PPI readings for August this week
Inflation data and the first U.S. presidential debate between Vice President Kamala Harris and former President Donald Trump dominated headlines this week. Stocks bounced from last week’s steep losses and brushed off a hotter-than-expected core consumer price index (CPI) reading for August, with the Dow Jones Industrial Average (DJI) and S&P Index (SPX) staging their largest intraday comebacks since October 2022.
The SPX and Nasdaq Composite (IXIC) went on to nab their fourth-straight daily gains after the producer price index (PPI) for last month was in line estimates, with traders buying back tech as they grew confident in the prospect of an interest rate cut next week. Improved consumer confidence and import price data helped set all three major indexes on track for weekly wins.
Tech Stocks to Watch
Apple (AAPL) unveiled its iPhone 16 this week, which features Arm’s (ARM) artificial intelligence (AI) chip technology. In other major sector news, Palantir Technologies (PLTR) and Dell Technologies (DELL) will join the SPX later this month, and Oracle (ORCL) saw a post-earnings record high. Meanwhile, a rare double downgrade dinged Micron Technology (MU).
Latest Analyst Updates
Analysts had a lot to say this week. United States Steel (X) and JetBlue (BLU) scored bull notes, despite uncertainty over the former’s acquisition by Nippon Steel. Anheuser-Bush (BUD) was also in focus after Morgan Stanley named it a top pick, while Roku (ROKU) received an upgrade to “outperform.” Elsewhere, AstraZeneca’s (AZN) lackluster drug trial results ushered a downgrade to “sell” at Deutsche Bank.
Interest Rate Decision Coming Up
Retail sales, manufacturing data, and the Federal Reserve’s interest rate decision will command attention next week. And while earnings season has cooled off, expect to hear from Darden Restaurants (DRI), FactSet (FDS), FedEx (FDX), and General Mills (GIS). Triple witching Friday is also coming, and traders should be on the lookout for another potential delta-hedge selloff.