The S&P 500 and Nasdaq logged more record highs this morning
Wall Street is higher across the board today, as investors react favorably to cooler-than-expected inflation data. The Dow Jones Industrial Average (DJI) is up 87 points midday, as the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) score more record highs.
May's lower-than-expected consumer price index (CPI) sent bond yields lower, with the 10-year Treasury yield last seen below 4.3%. All eyes now turn to the conclusion of the Federal Reserve's two-day policy meeting, with odds of an interest rate cut in September already higher than yesterday.
Continue reading for more on today's market, including:
- Oracle gets in on the AI bump.
- Retail stock in overbought territory.
- Plus, oil bulls call a bottom; homebuilding stocks rise; and Kroger's pivot worsens.
Chesapeake Energy Corp (NASDAQ:CHK) is seeing a bump in options activity. So far today, 4,505 puts have exchanged hands, volume that is 12 times the average intraday amount. Most of this activity resides at the July 85 put, where new positions are being opened. CHK is down 1.1% to trade at $87.70 at last check, but is lower this week despite gains from oil futures. Shares are up 13.9% this year.
One of the best stocks on the SPX today is PulteGroup Inc (NYSE:PHM), last seen up 4.8% to trade at $116.22, as the homebuilding sector rises thanks to interest rate cut optimism. PHM is up 13% in 2024, and its 3.3% pullback this quarter is testing its 100-day moving average.
Sitting out today's rally is grocery stock Kroger Co (NYSE:KR), though there's no specific catalyst. While KR is up over 10% in 2024, shares have taken a nearly 15% haircut from their April 3, two-year high of $58.33. Last seen down 1.7% to trade at $50.49, KR is close to its March pre-earnings level before a 9.9% gap higher, and receiving support from the 160-day moving average.
