U.S. Market Indexes Advanced After Watered-down Inflation Measure Eased

Barry Adams
29 Sep, 2023
New York City

Market indexes advanced on the final trading day of the week, month and quarter after the latest report on inflation showed slight improvement. 

Benchmark indexes rebounded in Friday's trading after core personal consumption expenditures price index, an alternative and diluted measure of inflation, increased 0.1% in August from the previous month and rose 3.9% from a year ago. 

The data released by the Bureau of Economic Analysis showed monthly core PCE prices, which excludes food and energy prices, rose at the slowest pace since November 2020 and annual core prices eased to the level last seen in May 2021. 

Overall PCE price index increased 0.4% from the previous month and jumped 3.5% from a year ago 

Despite the market rebound in Friday's trading, market indexes are set to close down for the week, month and the quarter. 

The S&P 500 index is set to close down 0.4% in the week, fall 4% in September, and ease 2.2% in the third quarter and trim annual gain to 12.0%.  

The Nasdaq index set to advance 0.5% in the week, fall 4.4% in the month, decline 2.6% in the third quarter and trim annual gain to 26.5%.  

Investors remained cautious as the U.S. House controlled by Republicans struggled to unite and pass a short term spending plan for the upcoming fiscal year starting October 1. 

 

U.S. Indexes & Yields 

The S&P 500 index is set to close down the month by 4% and the Nasdaq index by 5% and both indexes are down 3% in the third quarter. 

The S&P 500 index increased 0.6% to 4,326.15 and the Nasdaq Composite rose 1.1% to 13,353.24. 

The yield on 2-year Treasury notes increased to 5.03%, 10-year Treasury notes inched lower to 4.52% and 30-year Treasury bonds edged down to 4.67%. 

Crude oil increased $0.33 to $92.04 a barrel and natural gas prices decreased 5 cents to $2.89 a thermal unit. 

The dollar index edged higher to 105.88, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.  

 

U.S. Stock Movers 

Nike Inc jumped 7.9% to $96.70 after the athletic shoes and sportswear maker reported mixed quarterly results and guided sales to rise in mid-single digit in the current fiscal year. 

Blue Apron Holdings Inc soared 133% to $12.82 after the meal kit company agreed to be acquired by Wonder Group for $13 a share. 

At the end of regular trading hours, Blue Apron stock closed at $5.49 valuing the company at $50 million. 

Vail Resorts, Inc decreased 3.9% to $233.31 after the ski resorts operator said revenue in the fiscal fourth quarter ending in July  increased to $269.8 million from $267.1 million a year ago. 

Net loss in the quarter expanded to $128.5 million from $108.7 million and diluted loss per share deepened to $3.35 from $2.70 a year ago. 

The company forecasted net fiscal year 2024 net income between $316 million and $394 million and the company declared a quarterly cash dividend of $2.06 per share payable on October 26 to shareholders on record October 10.