US open: Stocks lower following PPI reading
By Iain Gilbert
Date: Thursday 12 Dec 2024
(Sharecast News) - Wall Street stocks were in the red on Thursday as traders digested this week's second key inflation reading.
As of 1535 GMT, the Dow Jones Industrial Average was down 0.14% at 44,086.96, while the S&P 500 lost 0.23% to 6,070.07 and the Nasdaq Composite came out the gate 0.34% weaker at 19,966.19.
The Dow opened 61.60 points lower on Thursday, extending losses recorded in the previous session as investors digested last month's consumer price index report, which was in line with estimates, underscoring the belief that the Federal Reserve will likely lower its benchmark interest rate at the conclusion of its two-day policy meeting next week.
With inflation still in mind, Thursday's primary focus was news that the US producer price index had risen 3% on an annualised basis and 0.4% month-on-month in November, according to the Bureau of Labor Statistics, stronger than expectations. On a monthly basis, the core PPI rose 0.4%, while the annual core rate, which strips out volatile food and energy prices, steadied at 3.4%, the same as October's upwardly revised reading and above expectations of 3.2%.
November's increase marked the biggest monthly gain in five months, indicating that manufacturers have been experiencing increased costs, which they will likely pass on to consumers in the form of higher prices.
Elsewhere on the macro front, Americans lined up for unemployment benefits at an accelerated pace in the week ended 7 December, according to the Department of Labor.
Initial jobless claims surged by 18,000 to 242,000, well and truly ahead of expectations for a drop of 4,000 from the prior week's upwardly revised reading to 220,000, marking the steepest new claims count since October. Continuing claims rose by 15,000 to 1.86m, close to November's three-year high of 1.90m, while the four-week moving average, which aims to strip out week-to-week volatility, rose by 5,750 to 224,250.
In the corporate space, shares in software giant Adobe traded lower on the back of softer-than-anticipated Q4 revenue guidance.
Still to come, chipmaker Broadcom and retailer Costco will both report earnings after the close of trading.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Cisco Systems Inc. (CSCO) $59.57 1.67%
Coca-Cola Co. (KO) $63.65 1.61%
Boeing Co. (BA) $167.80 1.11%
Merck & Co. Inc. (MRK) $100.83 1.09%
Intel Corp. (INTC) $20.30 0.88%
International Business Machines Corporation (CDI) (IBM) $232.08 0.85%
Microsoft Corp. (MSFT) $452.22 0.72%
Salesforce.Com Inc. (CRM) $356.90 0.58%
McDonald's Corp. (MCD) $297.65 0.52%
Amgen Inc. (AMGN) $274.82 0.52%
Dow Jones - Fallers
Walgreens Boots Alliance, Inc. (WBA) $9.61 -2.29%
Caterpillar Inc. (CAT) $385.49 -0.87%
Home Depot Inc. (HD) $419.24 -0.51%
Chevron Corp. (CVX) $155.71 -0.32%
Unitedhealth Group Inc. (UNH) $532.17 -0.25%
JP Morgan Chase & Co. (JPM) $242.96 -0.23%
Dow Chemical Co. (DOW) $41.40 -0.23%
Walt Disney Co. (DIS) $114.39 -0.19%
Verizon Communications Inc. (VZ) $41.95 -0.10%
Dowdupont Inc. (DWDP) $0.00 0.00%
S&P 500 - Risers
MetLife Inc. (MET) $83.56 4.01%
Centene Corp. (CNC) $58.72 3.21%
Kroger Co. (KR) $63.19 3.03%
NRG Energy Inc. (NRG) $97.65 2.28%
Becton, Dickinson & Company (BDX) $226.03 2.26%
Corning Inc. (GLW) $48.57 1.97%
Brighthouse Financial, Inc. (BHF) $49.36 1.73%
Lincoln National Corp. (LNC) $33.47 1.70%
Cisco Systems Inc. (CSCO) $59.57 1.67%
Coca-Cola Co. (KO) $63.65 1.61%
S&P 500 - Fallers
Adobe Systems Inc. (ADBE) $481.63 -12.42%
Advance Auto Parts (AAP) $44.15 -3.05%
Nucor Corp. (NUE) $134.48 -2.86%
Under Armour Inc. Class A (UAA) $10.03 -2.57%
PACCAR Inc. (PCAR) $112.90 -2.55%
Gap Inc. (GAP) $24.58 -2.54%
Walgreens Boots Alliance, Inc. (WBA) $9.61 -2.29%
Lam Research Corp. (LRCX) $76.51 -2.20%
Broadcom Inc. (AVGO) $179.26 -2.15%
Incyte Corp. (INCY) $70.94 -2.14%
Nasdaq 100 - Risers
Trip.com Group Limited (TCOM) $74.87 2.83%
Cisco Systems Inc. (CSCO) $59.57 1.67%
Seagate Technology Plc (STX) $99.96 1.60%
Charter Communications Inc. (CHTR) $383.82 1.41%
Comcast Corp. (CMCSA) $40.15 1.11%
Liberty Global plc Series C (LBTYK) $13.86 1.09%
Check Point Software Technologies Ltd. (CHKP) $189.93 0.98%
Baidu Inc. (BIDU) $90.24 0.97%
Intel Corp. (INTC) $20.30 0.88%
Monster Beverage Corp (MNST) $52.54 0.84%
Nasdaq 100 - Fallers
Adobe Systems Inc. (ADBE) $481.63 -12.42%
PACCAR Inc. (PCAR) $112.90 -2.55%
Walgreens Boots Alliance, Inc. (WBA) $9.61 -2.29%
Lam Research Corp. (LRCX) $76.51 -2.20%
Broadcom Inc. (AVGO) $179.26 -2.15%
Incyte Corp. (INCY) $70.94 -2.14%
JD.com, Inc. (JD) $37.53 -1.77%
Nvidia Corp. (NVDA) $136.90 -1.73%
Dollar Tree Inc (DLTR) $70.45 -1.65%
Skyworks Solutions Inc. (SWKS) $88.07 -1.50%
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