Stocks Soar On Wall Street After Wholesale Inflation Cools

Barry Adams
15 Nov, 2022
New York City

Stocks soared on Wall Street after a measure of inflation rose at a slower-than-expected pace in October. 

The Producer Price Index increased 0.2% in October from the previous month, matching the downwardly revised rate in September, the U.S. Bureau of Labor Statistics said Tuesday.  

The 5.7% jump in gasoline prices drove the goods cost 0.6% higher, the fastest increase since 2.2% rise in June. 

However, services costs declined 0.1% in the month, the first decline since November 2020. 

The PPI rose 8.0% from a year ago following the 8.4% surge in September and the smallest increase since July 2021.

The yield on 2-year Treasury notes fell to 4.38%, 10-year notes declined to 3.79% and 30-year bonds eased to 3.98%.

Crude oil prices declined 52 cents to $82.32 a barrel and natural gas prices were unchanged at $5.94 a thermal unit. 

In stock trading, indexes advanced and tech stocks led the gainers. 

The S&P 500 index advanced 1.02% to 4,009.44 and the Nasdaq Composite index surged 2.1% to 11,429.39. 

Among widely held tech stocks, Apple, Amazon, Tesla, Microsoft and Alphabet jumped between 2% and 4%. 

Technology, real estate, communications systems, consumer staples and financial sectors jumped between 1.5% and 2.2%. 

Taiwan Semiconductor soared 11.9% to $81.21 after Warren Buffett controlled Berkshire Hathaway said in a filing with the Securities and Exchange Commission purchased $4.1 billion of stock in the third quarter. 

Home Depot increased 2.2% to $314.27 after the retailer reported better-than-expected revenue and earnings in its latest quarter and reaffirmed its annual outlook. 

Energizer Holdings Inc jumped 6.9% to $31.67 after the company reported stronger-than-expected quarterly results. 

Walmart Inc soared 7.8% to $148.20 after the retailer said fiscal third quarter revenue rose 9% to $152.81 billion and swung to a net loss of $1.8 billion or 66 cents a share from a profit of $3.11 billion or $1.11 a share a year ago. 

The retailer also announced a nationwide opioid settlement of $3.1 billion without admitting liabilities with state, local and tribal governments. 

The company also said the boost in sales at its e-commerce India-based arm Flipkart.com, also  helped results in the quarter. 

Getty Images Holdings Inc dropped 13.6% to $6.02 after the stock image marketplace operator reported quarterly earnings ahead of expectations but sounded cautious outlook. 

Bath & Body Works jumped 3.5% to $34.25 after hedge fund Third Point controlled by Dan Loeb revealed a stake of $265 million in the company. 

Vodafone Group Plc declined 6.4% to $11.54 after the mobile communication services provider lowered its earnings and cash flow outlook.