S&P 500 and Nasdaq Attempt Another Rebound Ahead of Inflation Reports

Barry Adams
09 Aug, 2023
New York City

Market averages attempted a rebound a day after regional banks dropped more than 3% after Moody's downgraded several banks. 

The S&P 500 index and the Nasdaq Composite traded higher ahead of inflation data tomorrow. 

Investors are anticipating that the recent cooling trend will continue in July but core inflation may stay higher. 

Consumer prices have cooled following a decline in energy prices but service costs are still rising at elevated pace and core inflation is above the 2% target set by the Federal Reserve. 

Market participants are worried that the Federal Reserve may abandon its target rate of 2% after the stubborn core inflation stays near 3%. 

In overseas news, China reported deflation in July after consumer prices fell 0.3% from flat in June, the National Bureau of Statistics reported Wednesday. 

Commodities prices traded volatile after the China inflation report but traders held out for an announcement of stimulus measures. 

Closer to home, regional banks are expected to remain in focus after Moody's downgraded 10 banks and placed 11 other banks on its negative watch list. 

 

U.S. Indexes & Yields 

The S&P 500 index traded down 0.02% to 4,498.07 and the Nasdaq Composite declined 0.2% to 13,848.19. 

The yield on 2-year Treasury notes decreased to 4.71%, 10-year Treasury notes inched lower to 4.01% and 30-year Treasury bonds edged down to 4.19%. 

Crude oil decreased $0.97 to $82.87 a barrel and natural gas prices increased 7 cents to $2.74 a thermal unit. 

 

U.S. Stock Movers 

Lyft Inc declined 6.9% to $10.76 after the ride-hailing company released its quarterly results. 

Stock jumped after the company reported adjusted earnings per share of 16 cents and revenue of $1.02 billion, meeting estimates set by some analysts. 

But the stock turned lower after investors reassessed the company's fiscal fourth quarter revenue outlook which fell short of some analysts' estimates. 

Rivian Automotive Inc was nearly unchanged at $24.80 after the maker of electric vehicles narrowed its quarterly loss and revised higher its production target. 

Rivian said second quarter revenue jumped to $1.1 billion from $364 million and net loss shrank to $1.2 billion from $1.7 billion and diluted pre share declined to $1.27 from $1.89 a year ago. 

The company forecasted 2023 production target of 52,000 from the previous estimate of 50,000 and higher than 25,000 from a year ago. 

The company delivered 12,640 vehicles in the second quarter, sharply higher than 4,467 vehicles a year ago. 

WeWork Inc plunged 9.9% to 19 cents after the company said in an SEC filing that it may consider restructuring its debt including bankruptcy amid weak membership rates. 

PENN Entertainment Inc jumped 19% to $29.64 after the company signed a 10-year deal with ESPN to create ESPN Bet, a sports betting site. 

As a part of the deal, Penn agreed to pay ESPN $1.85billion in cash.