Wall Street Indexes Extend Gains to Third Consecutive Week

Barry Adams
27 Sep, 2024
New York City

Wall Street indexes advanced in early trading on Friday after the latest inflation data pointed to steady improvement. 

The S&P 500 index and the Nasdaq Composite edged up 0.2%, and both benchmark indexes are set to advance more than 1% for the week. 

Market sentiment was positive after the Personal Consumption Expenditure Price Index slowed to 0.1% in August from 0.2% in July, the U.S. Bureau of Economic Analysis reported Friday. 

The alternative measure of inflation, which accounts for product substitution by consumers because of higher prices, on an annual basis slowed to 2.2% from 2.5% in the previous month. 

The Core PCE price index, which excludes volatile energy and food prices, edged up slightly to 2.7% after falling for four months in a row. 

The alternative measure of inflation, which is keenly watched by the Fed's policymakers, is widely considered a controversial measure because it understates the inflation experienced by most urban families. 

In other global economic news, China's leaders pledged to announce broad fiscal measures during an unexpected Politburo meeting chaired by Xi Jinping.

Benchmark indexes in Hong Kong and mainland China soared for the four days in a row to jump 13% and rebound more than 20% over the last two weeks of trading. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,763.88, the Nasdaq Composite rose 0.1% to 18,204.34, and the Russell 2000 index rose 0.7% to 2,224.82. 

The yield on 2-year Treasury notes edged higher to 3.61%, 10-year Treasury notes inched up to 3.77%, and 30-year Treasury bonds inched higher to 4.10%.

WTI crude oil decreased $0.05 to $67.65 a barrel, and natural gas prices edged down 3 cents to $2.83 a thermal unit.

Gold fell by $4.13 to $2,668.17 an ounce, and silver decreased by $0.25 to $32.22.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.77.

 

U.S. Stock Movers

Costco Wholesale declined 2.7% to $876.83 after the wholesale retailer reported weaker-than-expected quarterly results. 

Revenue in the fiscal fourth quarter ending on September 1 increased 1% to $78.2 billion from $77.4 billion, net income advanced to $2.35 billion from $2.16 billion, and diluted earnings per share rose to $5.29 from $4.86 a year earlier. 

Comparable sales excluding gasoline and foreign exchange rates increased 6.3% in the quarter and rose 5.0% in the fiscal year. 

E-commerce comparable sales soared 19.5% in the quarter and 16.2% in the fiscal year, as members continued to search for bargains online. 

Vail Resorts, Inc. declined 4.1% to $180.01 after the ski resort operator reported weaker-than-expected quarterly results. 

Revenue in the fiscal fourth quarter ending in July declined to $265.4 million from $269.8 million, net loss attributable to shareholders expanded to $177 million from $128.5 million, and diluted loss per share increased to $4.67 from $3.35.