Wall Street will eventually beat CPI. JP Morgan, financial stocks rise

Finance


  • JPMorgan profited from Jefferies upgrade before earnings
  • Salesforce Rises on Product Price Increases
  • Indices: Dow up 0.9%, S&P 500 up 0.7%, Nasdaq up 0.6%

NEW YORK (Reuters) – U.S. stocks rose Tuesday on optimism ahead of a major inflation report and financial stocks such as JPMorgan rose ahead of earnings results later this week.

Investors are seeking more clues as to whether price pressures are easing and whether the Federal Reserve is nearing the end of its rate-hiking cycle.

US consumer price data will be released on Wednesday and producer price data on Thursday. Several Fed officials said this week that the Fed will likely need more rate hikes to keep inflation under control, but the end of the tightening cycle is near.

Shares of JPMorgan Chase & Co (JPM.N) rose 1.6% after Jefferies upgraded the stock to buy ahead of the bank’s quarterly results on Friday.

Reports from JP Morgan and other big banks are expected later this week to unofficially kick off the second quarter reporting period. The S&P Banks Index (.SPXBK) rose 1.5%.

Energy stocks (.SPNY) surged as oil prices soared.

“It’s nice to see the market spread out here ahead of earnings,” said Tim Griskey, senior portfolio strategist at Ingalls & Snyder in New York.

“There’s going to be a lot of data coming in here…and Q3 forecasts are also a concern in terms of the guidance companies might issue on earnings calls.”

Traders work on the floor of the New York Stock Exchange (NYSE) on June 29, 2023 in New York City, USA.Reuters/Brendan McDiarmid/File Photo

The S&P 500 is up 15.6% year-to-date, while tech stocks (.SPLRCT) are up 40% over the same period.

The Dow Jones Industrial Average (.DJI) rose 317.02 points (0.93%) to 34,261.42, the S&P 500 (.SPX) rose 29.73 points (0.67%) to 4,439.26, and the Nasdaq Composite Index (.IXIC) rose 75.22 points. Did. 13,760.70, up 0.55%.

Wall Street banks are expected to report higher earnings in the second quarter as higher interest payments offset lower trading.

Shares of video game maker Activision Blizzard (ATVI.O), one of the day’s biggest gainers in the S&P 500 index, fell after a U.S. judge ruled over Microsoft’s (MSFT.O) purchase of the Call of Duty game. It rose 10% after it ruled that it could move forward. Maker.

Shares of Salesforce (CRM.N) rose 3.9% after the cloud services firm said it would raise prices for some of its cloud and marketing tools for the first time in seven years.

Shares of Amazon.com (AMZN.O) rose 1.3% after Prime Day, a 48-hour discount shopping event taking place this week.

U.S. exchanges traded 9.97 billion shares, averaging 11.1 billion shares over the past 20 trading days.

On the New York Stock Exchange, the number of gainers outnumbered the number of losers by a ratio of 3.65 to 1. The Nasdaq market favored the upside by a ratio of 1.82 to 1.

The S&P 500 hit 51 52-week highs and 1 new low. The Nasdaq Composite posted 91 new highs and 40 new lows.

Reporting by Caroline Valetkevich in New York Additional reporting by Johann M. Cherian and Bansari Mayur Kamdar in Bangalore.Editing: Maju Samuel and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.



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