Stock markets today: S&P 500, Nasdaq rise amid more signs of cooling inflation

U.S. stocks rose on Thursday as investors digested high-running expectations for a quarter-point interest rate cut next week after testing fresh inflation and labor data.

The S&P 500 (^GSPC) rose 0.1% while the Nasdaq Composite (^IXIC) gained 0.3%, led by sharp closing gains driven by a technical rally. The Dow Jones Industrial Average (^DJI) was little changed.

Markets are regrouping after a seesaw on Wednesday that saw renewed enthusiasm for technology pull stocks from a slide. The losses came as expectations for the latest 0.5% rate cut by the Federal Reserve dashed expectations of a fall in consumer inflation.

Read more: Fed forecast for 2024: What experts say about rate cut prospects

Earlier in the hour, the August producer price index indicated that inflationary pressures were cooling enough for the Fed to start easing rates.

Wholesale prices rose 0.2% month-on-month, slightly more than economists had expected. On an annual basis, PPI rose 1.7%, in line with expectations, while July's reading was revised lower.

Meanwhile, data showed initial jobless claims rose to a better-than-expected 230,000 last week, up 2,000 from the previous weekly period. Traders' odds of cutting 25 basis points rose to 87% after the report, up from 50% just a few days ago.

On the corporate front, shares of Moderna ( MRNA ) fell as much as 17% after the vaccine maker cut its annual earnings outlook for 2025. The company also said it will reduce its annual R&D budget.

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Thursday, September 12, 2024 at 9:45 AM PDT

GM, Hyundai to explore jointly developing cars to 'unlock scale'

Pros Subramanian of Yahoo Finance reported:

GM ( GM ) and Hyundai ( HYMTF ) signed an agreement Thursday morning to jointly develop cars, powertrains and explore various technologies, indicating how far the Korean automakers have come in the past 30 years.

Under the non-binding memorandum of understanding signed by Hyundai Motor Group Executive Chair Yoosun Chung and GM CEO Mary Barra, the two companies will collaborate and co-develop, including passenger and commercial vehicles and powertrain technologies including gas-powered motors and clean-energy alternatives, including This will include electric and hydrogen options.

The two automaker giants said they will explore opportunities to combine resourcing for battery raw materials, steel and other products.

Read more here.
Thursday, September 12, 2024 at 9:00 AM PDT

Mortgage payments lower than a year ago thanks to Redfin:

Buying a home is more affordable than it was a year ago, according to new data from Redfin.

Redfin found that the average monthly mortgage payment reached $2,558 in the last four weeks ending in September. This is a decrease of 1.3% compared to last year.

A big help has been the lowering of mortgage rates. The average rate on a 30-year fixed-rate mortgage fell to 6.2% this week, according to data from Freddie Mac. Mortgage rates have fallen more than half a percentage point in the past six weeks as investors expect a rate cut from the Fed They are at their lowest level since February 2023.

Still, home prices haven't come down from their highs. Redfin data shows the median sales price stood at $388,085, a 3.7% year-over-year increase. Home prices continue to rise due to lack of supply. That, and buyers' expectations that rates will be lower after the Fed eases monetary policy, still keep the housing market stagnant.
Thursday, September 12, 2024 at 8:25 am PDT

Apple Receives FDA Approval for AirPods Hearing Aid Software

Apple ( AAPL ) has received approval from the U.S. Food and Drug Administration for its hearing aid software to be used in AirPods.

The feature was first unveiled at the tech giant's annual product launch in California earlier this week.

Once installed and customized, the over-the-counter hearing aid software is “intended to amplify sounds for individuals 18 years of age and older who have mild to moderate hearing impairment,” according to the FDA statement.
Thursday, September 12, 2024 at 7:35 am PDT

'No big surprises': Why Apple stock didn't move much on iPhone 16 news

Yahoo Finance's Madison Mills reports:

Apple's artificial intelligence offering, Apple Intelligence, was the star of its annual iPhone event on Monday.

But for investors, the slow rollout of Apple Intelligence could pose problems. While Apple's iPhone 16 hits stores on September 20, the software update required for Apple Intelligence won't be available to US English users until October.

The disconnect between hardware and software may be one reason why Apple stock hasn't advanced much on the news. Shares of the iPhone maker fell about 0.9% during the company's “Glowtime” presentation in Cupertino, California, and were up less than 1% in the three days since the event.

Read more here.
Thursday, September 12, 2024 at 7:08 AM PDT

Delta reveals strong outlook despite summer technical glitches

Delta ( DAL ) stock jumped Thursday before dipping into negative territory after the airline said its full-year profit would come in at the midpoint of its previously expected range despite computer glitches earlier this summer.

Excluding the impact of a global technology outage in July, the airline sees full-year adjusted earnings per share of $6.50 or above, up from the previous estimate of $6 to $7.

Delta shares fell nearly 2% in early trading.
Thu, Sep 12, 2024 at 6:32 am PDT

Stocks steady, higher-than-expected jobless claims amid cooler inflation data

Stocks were little changed on Thursday as investors digested a new batch of data that could provide clues about how big of a rate cut the Federal Reserve will decide to implement at its policy meeting this month.

The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) were flat, paring sharp closing gains with a technical rally. The Dow Jones Industrial Average (^DJI) was also little changed.

On the inflation data front, the producer price index rose 0.2% in August from the previous month, slightly more than economists had expected. Meanwhile, July's PPI reading has been revised to the downside. On a year-over-year basis, wholesale prices rose 1.7%, in line with expectations.

Weekly initial jobless claims rose 2,000 to 230,000, more than economists had expected.

Investors are paying close attention to these data points as the Federal Reserve prepares to meet next week. Markets are anticipating a massive rate cut. What is unknown is how big that cut will be.