Wall Street Indexes Extend Gains After CPI Report, Core Inflation Stays Above 3%

Barry Adams
11 Dec, 2024
New York City

Wall Street indexes advanced after the latest consumer price inflation update met expectations set by economists. 

The S&P 500 index advanced 0.7%, and the Nasdaq Composite jumped more than 1% after consumer price inflation edged slightly higher in November. 

The annual consumer price inflation increased to 2.7% in November from 2.6% in October, largely driven by persistent increases in the cost of shelter, medical care, new and used vehicles, and furnishing. 

Core consumer price inflation, which excludes volatile food and energy prices, held at 3.3%, unchanged from September and October, the U.S. Bureau of Labor Statistics reported Wednesday. 

On a monthly basis, overall and core inflation rose 0.3%, largely driven by an increase in shelter prices. 

Tech stocks led the gainers following the inflation report, and Tesla, Nvidia, Meta Platforms, and Amazon.com advanced. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.7% to 6,074.54, the Nasdaq Composite rose 1.3% to 19,934.40, and the Russell 2000 index advanced by 0.5% to 2,393.18. 

The yield on 2-year Treasury notes edged higher to 4.15%, 10-year Treasury notes inched up to 4.24%, and 30-year Treasury bonds increased to 4.43%.

WTI crude oil increased $0.81 to $69.35 a barrel, and natural gas prices edged up 13 cents to $3.29 a thermal unit.

Gold increased by $6.32 to $2,701.34 an ounce, and silver fell by $0.13 to $31.77. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.11 to 106.50.

 

Stock Movers 

General Motors advanced 0.7% to $53.55 after the company canceled its plan to stop funding self-driving technology by car company Cruise. 

GE Vernova Inc. increased 2.7% to $336.37 after the company released its full-year outlook for 2024 and 2025. 

The company estimated revenue in 2024 closer to the upper end of its range between $34 billion and $35 billion and in 2025 to range between $36 billion and $37 billion. 

Free cash flow in 2024 is expected to trend closer to the range between $1.3 billion and $1.7 billion and in 2025 to range between $2.0 billion and $2.5 billion. 

Macy's declined 10.5% to $14.92 after the department store chain cut its full-year earnings estimate. 

The company lowered its adjusted earnings per share to range between $2.25 and $2.50 from the previous estimate between $2.55 and $2.90. 

However, the company revised its full-year sales to fall between $22.3 billion and $22.5 billion from the previous estimate between $22.1 billion and $22.4 billion. 

Dave & Buster's Entertainment plunged 16.7% to $30.77 after the arcade and dining venue operator reported a loss and announced the departure of the company's chief executive. 

Revenue in the third quarter decreased 3% to $453 million, driven by a 7% decline in comparable sales from a year ago. 

Net loss expanded to $32.7 million from $5.2 million, and diluted earnings per share rose to 84 cents from 12 cents a year ago, respectively. 

The company's chief executive, Chris Morris, has resigned, and the current chairman of the board, Kevin Sheehan, is acting as the interim chief executive until a permanent chief executive has been appointed. 

During the third quarter, the company repurchased $28 million of shares, bringing its total repurchases year to date to $88 million, representing 2 million shares or 5.1% of the outstanding shares as of the end of fiscal 2023. 

The company has $112 million remaining on its share repurchase authorization.