Inflation Data Highlights Volatile Week

The Dow is headed for a weekly win

Deputy Editor
Aug 11, 2023 at 1:32 PM
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It was a rocky week on Wall Street, with most of investors' focus on the end of the week's inflation data. July's consumer price index (CPI) reading rose to 3.2% from June's 3%, though still below analyst expectations, while the producer price index (PPI) came in slightly hotter-than-expected at 0.3%. The softer-than-expected results helped the major benchmarks overcome early-week bank sector woes

Nevertheless, the S&P 500 (SPX) and Nasdaq Composite (IXIC) are on track for weekly losses, though if Friday's gains hold, the Dow Jones Industrial Average (DJI) will snag a weekly win thanks to a 407-point pop on Monday. 

2 Blue Chips in the Spotlight

Walt Disney's (DIS) post-earnings pop also helped the Dow this week. The entertainment giant posted mixed fiscal third-quarter results, with the stock getting a boost after the company's announcement that it will up its prices on ad-free Disney+ subscriptions. Plus, earlier in the week, Disney revealed a $2 billion deal with Penn Entertainment (PENN) launch an online sports betting business, ESPN Bet. 

Home Depot (HD) was hit with a bear note this week, after Telsey Advisory Group downgraded the stock to "market perform" from "outperform" alongside sector peer Lowe's Companies (LOW). Home Depot also reports earnings next week and has been moving back toward its recent peak ahead of the event. 

Other Earnings Reports to Watch

Eli Lilly (LLY) shot to record highs this week after the company's upbeat earnings report. Datadog (DDOG) and Palantir Technologies (PLTR) swung the other way, both staging post-earnings drops, while BioNTech (BNTX) sank to two-year lows as well. Lyft's (LYFT) pricing strategy overshadowed its upbeat results, as it struggles to compete with Uber (UBER). 

Earnings Season Starting to Dwindle 

Next week, earnings season will start to wind down, with a much narrower batch of reports scheduled. There will still be plenty of economic data, however, particularly through the middle of the week. 

Going back to the S&P 500's pullback last week, here is some context for the pullback, as well as what can be expected in the months after it

 

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