The Dow Jones Industrial Average was poised to rise Tuesday while global stocks were mixed, after the release of key U.S. inflation data.
Futures for the
Dow Jones Industrial Average
rose 141 points, or 0.4% after the index rose 261 points on Monday to close at 34,869, reversing five consecutive days of losses. Futures on the
were up 0.4%, while
futures had risen 0.4%.
The stock market was celebrating a benign inflation report. Consumer prices rose 0.3% month-over-month in August, while core CPI rose 0.1%. Expectations were for CPI to rise 0.4% in August, down from 0.5% in July. Compared with the same period last year, inflation rose 5.3%, as companies raise prices to cover higher costs.
Before the inflation result, Tom Essaye, founder of Sevens Report Research, wrote, “If the CPI report …suggests that price pressures have already peaked, stocks are likely going to be able to further stabilize after yesterday’s bounce.”
Inflation has been central to the narrative of markets in recent months—especially the debate over whether high year-over-year readings are lasting or transitory. Concerns over inflation come as central banks like the Federal Reserve consider slowing, or tapering, their pandemic-era program of monthly asset purchases, which add liquidity to markets. A weaker-than-expected report could give the Fed more wiggle room in regards to monetary policy.
In commodity markets, oil prices moved higher as the crude rally continued. International benchmark Brent crude futures were changing hands around $74 a barrel, while futures for the U.S. benchmark, West Texas Intermediate, neared $71 a barrel.
Overseas, the Chinese technology sector remained under pressure from the reported planned breakup of major payments app Alipay by regulators, with the
down 1.4% and Hong Kong’s
Hang Seng Index
falling 1.2%. The pan-European
was 0.1% lower, in line with the region’s major indexes.
Here are 7 stocks on the move Tuesday:
Luxury-goods stocks like
were all lower, as analysts noted concerns over rising Covid-19 cases in Asia. Consumers in China, Japan, and other countries in the region are critical to these companies’ sales and growth. LVMH was down 1.4% in London, Burberry down 1.8% in London, Kering down 3.5% in Paris, and Richemont down 1.9% in London.
stock was up 0.6% in premarket trading ahead of the launch event for the newest iPhones.
stock was falling 3.4% after reporting a profit of $1.03 a share, beating estimates of 97 cents a share, on sales of 9.73 billion, below expectations for $9.77 billion.
stock was more than 1.9% higher in premarket trading. The stock fell more than 2% Monday after announcing a $1.5 billion bond sale.
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