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

U.S. stocks were little changed 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 slightly while the Nasdaq Composite (^IXIC) gained 0.5%, snapping off sharp closing gains driven by a technical rally. The Dow Jones Industrial Average (^DJI) fell slightly.

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, Moderna ( MRNA ) shares fell 17% after the biotech giant cut its annual revenue outlook for 2025. The company also said it will cut its annual R&D budget by about $1.1 billion by 2027.

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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 plunging into negative territory after the airline said its full-year profit would come in at the midpoint of a previously expected range despite computer glitches earlier this summer.

The airline sees full-year adjusted earnings per share of $6.50 or above, versus a prior reading of $6 to $7, excluding the impact of a global technology outage in July.

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.