S&P 500 Inches Higher as Investors Await Inflation Data | Best Investment Manager Insights
In a cautious trading session on Monday, the S&P 500 managed to edge higher as investors eagerly anticipated the release of key inflation data later this week. At 16:00 ET (20:00 GMT), the S&P 500 was up by 0.03%, the Dow Jones Industrial Average dipped by 0.3%, and the Nasdaq Composite gained 0.2%.
CPI Data Awaited for Economic Insights
The focus for this week is squarely on inflation data, scheduled to be released on Wednesday, to provide more insights into the state of the economy and potential cooling of inflation. Analysts expect the reading for July to show a slight decrease from the previous month, which could fuel optimism for lower interest rates.
The Federal Reserve is widely expected to initiate rate cuts starting in September, amidst indications of a slowing U.S. economy. However, there is uncertainty among investors regarding whether the central bank will opt for a 25 basis point or 50 basis point cut. The Fed has signaled that positive economic data could pave the way for a September rate cut, regardless of inflation hitting the 2% annual target.
Earnings Season Highlights
While the quarterly earnings season is winding down, some notable companies like Home Depot and Cisco Systems are yet to report their earnings in the coming days. According to Factset, around 78% of the companies in the S&P 500 that have reported earnings for Q2 so far have delivered positive EPS surprises.
Stocks in Focus
JetBlue Airways Corp saw a significant drop of nearly 21% after announcing plans to sell $400 million of convertible senior notes. On the other hand, KeyCorp surged by 9% following a $2.6 billion investment from Bank of Nova Scotia for a 14.9% stake in the bank. B. Riley Financial Inc tumbled by 52% after projecting a Q2 net loss and suspending its dividend. Starbucks Corporation rose by 2.6% on reports of a potential deal with Elliot Investment Management for a board seat.
In a nutshell, keep an eye on inflation data and upcoming earnings reports for valuable insights into the market trends. Stay informed and make informed decisions to secure your financial future.