Dow Jones, S&P 500 Rally On Less-Than-Expected Inflation Report

Stock Market Today Mid Morning Updates

On Wednesday morning, the Dow Jones Industrial Average rallied over 480 points. This comes after the Labor Department released the most recent consumer price index (CPI) report. In it, The consumer price index increased 8.5% in July from a year ago, which is under expectations, due largely to dropping energy prices. In fact, on a monthly basis, prices were unchanged as energy prices widely fell 4.6% and gasoline dropped 7.7%. As a result, this offset a 1.1% monthly increase in food prices, as well as a 0.5% gain in shelter costs. This is positive news for investors and the market as this could be an indication that inflation has peaked and the worst of it is behind us.

Furthermore, on Tuesday after the market closed, companies like Coinbase Global Inc.  (NASDAQ: NVAX), and Roblox (NYSE: RBLX) reported their corporate earnings. Additionally, on Wednesday after the market closes, companies such as Coupang, Inc. (NYSE: CPNG), Bumble Inc. (NASDAQ: BMBL), and Walt Disney Co. (NYSE: DIS) are scheduled to report earnings.

Amid the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are green by 1.64% on Wednesday, while Microsoft (NASDAQ: MSFT) is also trading higher by 2.18%. Meanwhile, shares of Caterpillar, Inc. (NYSE: CAT), and 3M Co. (NYSE: MMM) shares are trading modestly higher during the Wednesday morning trading session. Among the Dow financial leaders, shares of American Express Co. (NYSE: AXP) and JPMorgan Chase & Co. (NYSE: JPM) are both trading higher on Wednesday morning.

Shares of EV leader Tesla (NASDAQ: TSLA) gained on Wednesday by 1.90%. Rival EV companies like Rivian (NASDAQ: RIVN) are also trading higher by 1.44%. Lucid Group (NASDAQ: LCID) stock recovered by 2% on Wednesday. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Inc. (NYSE: XPEV) are trading mixed on Wednesday.

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Dow Jones Today: U.S. Treasury Yield Drops To 2.73%; CPI Report Comes In Weaker-Than-Expected

Following the stock market opening on Wednesday, the major indices opened green. The Dow, S&P 500, and Nasdaq are trading down by 1.54%, 1.78%, and 2.26%, respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) has gained by 2.23% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up 1.77%. The benchmark 10-year U.S. Treasury yield is at 2.73% during the Wednesday morning trading session.

On Wednesday morning, the most recent consumer price index report was released by the Labor Department. In the report, CPI rose 8.5% last month from a year ago. This is below the consensus expectations of 8.7%. This is largely contributed to lagging energy prices. In detail, on a monthly basis, prices were unchanged as energy prices broadly declined 4.6% and gasoline fell 7.7%. In light of this, it offsets a 1.1% monthly jump in food prices, along with a 0.5% gain in shelter costs.

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Coinbase Stock Drops After Missing Its Second Quarter Earnings

Shares of Coinbase Global dropped in extended trading hours on Tuesday. This came after the cryptocurrency company reported a miss for their second quarter 2022 earnings. In detail, the company posted a loss of $4.95 per share on revenue of $808.3 million. The consensus estimate was a loss of $3.04 per share on revenue of $1.2 billion. What’s more, the company’s revenue fell nearly 64% in the quarter and the company announced it has lowered its full-year outlook for transacting users.

In a note to shareholders, the company stated, “Q2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management program. We are focusing on our top business priorities and more tightly managing expenses. As a result, we have included more information in our shareholder letter this quarter, which we have organized into chapters, summarized below, to help investors better understand our results.” On Wednesday morning shares of COIN have rebounded over 4% and are currently trading at $93.08 a share.

COIN stock chart
Source: TD Ameritrade TOS

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 |