U.S. indexes closed up on Tuesday and hit a near two-week high after softer producer prices data reinforced bets of an interest-rate cut by the Federal Reserve in September.
Market Snapshot
The S&P 500 gained 90.04 points, or 1.68%, to end at 5,434.43 points, while the Nasdaq Composite gained 407.00 points, or 2.43%, to 17,187.61. The Dow Jones Industrial Average rose 408.63 points, or 1.04%, to 39,765.64.
Market Movers
Nvidia - Nvidia stock was up 6.5% as investors await the semiconductor company’s earnings report, which is scheduled for the end of the month.
Starbucks, Chipotle - Starbucks said early on Tuesday thatChief Executive Laxman Narasimhan is stepping downand will be succeeded by Brian Niccol, the current chairman and CEO ofChipotle Mexican Grill. Starbucks stock jumped 24.5% while Chipotle shares dropped 7.5%.
Sea - Sea beat revenue estimates for the second quarter and raised its forecast for e-commerce platform Shopee, signaling robust demand for online shopping in Southeast Asia and sending its U.S.-listed shares up 11.9% on Tuesday.
Trump Media & Technology - Trump Media & Technology Group stock was off 3.6%. The decline comes after aconversation between former President Donald Trumpand Elon Musk which was held on theTesla CEO’s X social-media platform, which is a rival to Trump Media’s Truth Social.
Dell Technologies - Dell Technologies stock rose 4.9%. An analyst at Barclaysupgradedshares to Equal Weight from Underweight.
Buzzfeed - BuzzFeed reported an adjusted loss for the second quarter of 18 cents a share, which was narrower than the loss of 63 cents a share reported a year ago. Shares of the media platform were up 26% to $2.82. The shares soared 25.9%.
Uber - Uber Technologies stock gained 2.6%. Longdley Zephirin from the Zephirin Group wrote on Tuesday that the market isundervaluing Uber’s revenue growth potential. Zephirin increased his price target on Uber to $80 from $75 while reiterating a Buy rating.
On Holding - On Holding stock rose 4.4% after the maker of athletic sneakers reported second-quarter adjusted earnings that missed Wall Street estimates. Revenue for the quarter was above expectations and the company maintained its full-year financial guidance.
Home Depot - Home Depot stock closed up 1.2% after thehome-improvement retailersaid it now expects comparable sales for the year to decline 3% to 4% as consumers remain under pressure. Last quarter, the company said it expected comparable sales to drop about 1%. The company also said it now expects adjusted earnings for the year to drop 1% to 3%, compared with prior guidance of a 1% gain. Despite the lowered outlook, Home Depot reported second-quarter earnings and revenue above Wall Street estimates.
CXApp - Workplace experience platform CXApp stock price jumped a massive 84.4% as it signed a multi-year, multi-million dollar agreement with Google Cloud.
Market News
US Producer Inflation Slows as Pricing Power Diminishes
U.S. producer prices increased less than expected in July as the cost of services fell by the most in nearly 1-1/2 years amid signs of diminishing pricing power for businesses, evidence of waning inflation pressures that reinforced hopes of an interest rate cut next month.
The report from the Labor Department on Tuesday also showed favorable readings for most of the components that go into the calculation of the personal consumption expenditures (PCE) price indexes, the inflation measures tracked by the Federal Reserve for monetary policy. Moderating inflation should allow the U.S. central bank to focus more on the labor market.
The producer price index for final demand edged up 0.1% last month after rising by an unrevised 0.2% in June, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI gaining 0.2%.
In the 12 months through July, the PPI increased 2.2% after climbing 2.7% in June.
US Considers a Rare Antitrust Move: Breaking Up Google
A rare bid to break up Alphabet Inc.’s Google is one of the options being considered by the Justice Department after a landmark court ruling found that the company monopolized the online search market, according to people with knowledge of the deliberations.
The move would be Washington’s first push to dismantle a company for illegal monopolization since unsuccessful efforts to break up Microsoft Corp. two decades ago. Less severe options include forcing Google to share more data with competitors and measures to prevent it from gaining an unfair advantage in AI products, said the people, who asked not to be identified discussing private conversations.
Regardless, the government will likely seek a ban on the type of exclusive contracts that were at the center of its case against Google. If the Justice Department pushes ahead with a breakup plan, the most likely units for divestment are the Android operating system and Google’s web browser Chrome, said the people. Officials are also looking at trying to force a possible sale of AdWords, the platform the company uses to sell text advertising, one of the people said.