The Dow Jones Industrial Average headed toward another record day Friday as July inflation numbers reassured investors with four more tests for the market on the horizon. One player on the rise was Nvidia (NVDA), which rebounded back toward its 50-day moving average on the stock market today.
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The Dow gained 0.2% in early trades, adding to Thursday’s record close, while the S&P 500 climbed 0.6%. The Nasdaq led the major indexes, rising 0.9% and retaking its 50-day moving average, according to IBD MarketSurge
Small caps on the Russell 2000 added 0.5% while the Innovator IBD 50 (FFTY) exchange traded fund also rose 0.5%.
The yield on the benchmark 10-year Treasury note was unchanged at 3.87%.
Volume on the New York Stock Exchange and the Nasdaq was lower compared with the same time on Thursday. Advancers beat decliners by roughly 2-to-1 on both exchanges on the stock market today.
Few Surprises In Inflation Data; More Tests To Come
The personal income and outlays index for July came in at 0.2%, meeting estimates, according to Econoday. Annually, the index rose 2.5%, in line with views. Without the more volatile food and energy prices, the index rose 2.6% annually, slightly below expectations of 2.7%.
On Thursday, investors welcomed stronger-than-expected GDP data which showed 3% growth during the second quarter vs. estimates of 2.8%.
Four more economic tests remain ahead of the Sept. 18 Fed meeting. The Purchasing Managers’ Manufacturing Index for August is due for release on Tuesday with July’s factory orders expected Wednesday.
Then, August’s payroll data follows next Friday. And just ahead of the Fed meeting, markets also face Consumer Price Index numbers for August, which are due Wednesday, Sept. 11.
Stock Market Today: Buffett Stock Plunges
Ulta Beauty (ULTA) fell more than 5% after earnings missed analyst estimates. The company also lowered its full year outlook. Earlier in August, Warren Buffett’s Berkshire Hathaway (BRKB) disclosed it purchased 690,000 shares of the cosmetics maker.
On the Dow Jones index, Intel (INTC) gained in early trades amid news that the chip company may split its design and manufacturing businesses. Apple (AAPL) remained near a buy point of 237.23 ahead of its Sept. 9 event.
Magnificent Seven stocks Microsoft (MSFT) and Amazon (AMZN) were also gainers in the Dow.
Outside the Dow, shares of Lululemon (LULU) rose in volatile action on the stock market today after its second-quarter results. Though sales were mostly in line with estimates while earnings beat, shares struggled to break a downtrend since February and fell further below the 50-day moving average on Friday.
Dell Gets Its Own AI Boost
Dell (DELL) rose on strong artificial intelligence server demand during its second quarter. But the stock has a lot of work to do to get back to the 50-day line.
Amid software plays, MongoDB (MDB) soared 12% and rose above its 50-day line after its second quarter report. Sales rose 13% to $478 million, though earnings declined.
Autodesk (ADSK) rose after beating both sales and earnings estimates. Shares also rose on the computer design software maker’s higher outlook for the year. Shares gapped up past a buy zone from a 256.05 entry.
Elastic (ESTC) plummeted more than 20% and fell below the 50-day line on first-quarter results.
Finally, Emergent BioSolutions (EBS) rose on the stock market today after its vaccine for mpox got clearance from the Food and Drug Administration.
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