U.S. Treasury Yields Edged Lower After Consumer Inflation Eased In June

Barry Adams
11 Jul, 2024
New York City

Benchmark indexes hugged the flatline, and U.S. Treasury yields edged lower after the release of June consumer price inflation data. 

The S&P 500 index and the Nasdaq Composite inched slightly lower after consumer price inflation dropped to a three-year low level, but prices are still rising faster than the 2% target set by the U.S. Federal Reserve. 

Consumer price inflation eased for the third month in a row to 3.0% from 3.3% in May, the lowest since June 2023, the U.S. Bureau of Labor Statistics reported Thursday. 

Core inflation, which excludes volatile food and energy prices, eased to an annual pace of 3.3% in June from 3.4% in May and extended its decline after peaking at 6.6% in September 2022. 

Treasury yields also eased after the release of the June inflation data, and traders upped their bets that the Federal Reserve is more likely to cut rates after its September policy meeting. 

High-growth tech stocks, home builders, and home renovation retailers edged higher in the hopes that lower interest rates would spur more demand. 

Nvidia, Broadcom, Qualcomm, Home Depot, Lowe's, D.R. Horton, Lennar, and NVR advanced more than 1% in early trading. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,640.04, and the Nasdaq Composite fell 0.1% to 18,646.76.

The yield on 2-year Treasury notes edged higher to 4.52%, 10-year Treasury notes increased to 4.18%, and 30-year Treasury bonds edged lower to 4.39%.

WTI crude oil decreased $0.29 to $81.81 a barrel, and natural gas prices edged down 3 cents to $2.29 a thermal unit.

Gold decreased by $36.27 to $2,408.85 an ounce, and silver rose 65 cents to $31.50. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.23.

 

U.S. Stock Movers 

Costco Wholesale declined 3.5% to $853.66 after the warehouse membership club operator raised annual subscription feel in the U.S. and Canada by $5 and premium membership by $10. 

MicroStrategy jumped 7.2% to $1,400.36, and the largest corporate holder of bitcoin announced a 10-to-1 stock split on Thursday. 

The company announced two classes of stock, Class A and Class B, to make its stock more accessible to investors and employees. 

Delta Air Lines declined 5.8% to $44.11, and the international air carrier reported weaker-than-expected quarterly results. 

The airline said net income in the second quarter dropped 30%, despite revenue reaching a record high. 

The company also estimated a lower-than-expected increase in revenue in the current quarter and estimated earnings per share in the third quarter to range between $1.74 and $2.0. 

Pfizer jumped 0.5% to $28.45, and the drugmaker said it will continue making its daily weight-loss pill following encouraging data in early-stage trials. 

PepsiCo decreased 0.6% to $162.16 after the snack and beverage company reported mixed quarterly results. 

Revenue increased 0.8% to $22.5 billion from $22.3 billion, net income advanced to $3.1 billion from $2.8 billion, and diluted earnings per share rose to $2.23 from $1.99 a year ago. 

WD 40 Company increased 2.8% to $225.90, and the lubricant maker reported better-than-expected fiscal third quarter results. 

PriceSmart edged slightly higher to $78.27 after the membership warehouse retail chain reported fiscal third-quarter results that were ahead of market expectations.