Stocks edge higher, pushing further into record territory
Stocks were mostly higher Wednesday, pushing beyond the records they had set a day before on the back of strong earnings and better-than-expected economic data
SINGAPORE — Stocks were mostly higher in midday trading Wednesday, pushing beyond the records they had set a day earlier on the back of strong earnings and better-than-expected economic data.
The S&P 500 index rose 0.1% as of 11:33 a.m. Eastern. The Dow Jones Industrial Average rose 172 points, or 0.5%, to 35,437 and the Nasdaq composite was down 0.5%.
Banks made some of the strongest gains as bond yields edged higher, which benefits banks because it allows them to charge higher interest on loans. The yield on the 10-year Treasury rose to 1.36% from 1.34% late Tuesday. Bank of America rose 1.7%.
Industrial stocks also made solid gains and helped counter a drop in technology and health care companies.
Traders got a dose of decent economic news Wednesday. A report from the Labor Department showed that consumer prices jumped 0.5% from June to July, down from the previous monthly increase of 0.9%. Year over year, consumer prices have increased a substantial 5.4%.
While the headline figures may seem bad, most of the rise in consumer prices has been tied to very specific goods that are not expected to impact the long-term health of the economy, like used cars, building materials and hotel rooms. These items came into short supply during the pandemic, and the increased economic activity has made prices for those items rise faster than usual.
The Federal Reserve has repeatedly said it believes any increase in inflation would be temporary and largely a result of the supply disruptions that happened because of the pandemic.
Investors had a mix of earnings and corporate news to review. Coinbase, a platform where traders can buy and sell digital currencies like Bitcoin, rose 7% after reporting strong growth in the last quarter.
Southwest Airlines initially fell but stabilized after saying it no longer expects to turn a profit in the third quarter as COVID-19 infections spread. Major airlines, including Delta Air Lines, United Airlines and American Airlines all wobbled between small gains and losses.
Weight-loss program operator WW International plunged 27% after reporting disappointing second-quarter financial results, while hamburger chain Wendy’s rose 4% after raising its profit forecast for the year and increasing its dividend.
Online auction and retail giant eBay will report its results after the closing bell Wednesday.
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AP Economics Writer Christopher Rugaber contributed to this report from Washington.
