Wall St opens higher on lower producer prices and Starbucks CEO announcement

From Investing.com: 2024-08-13 09:36:09

Wall Street is set for a higher open after producer prices data showed abating inflation pressures, likely leading to a rate cut in September. Starbucks shares surged after naming Chipotle’s Brian Niccol as CEO. U.S. producer prices rose less than expected in July, signaling continued moderation in inflation. Markets expect a 100-basis point rate cut by 2024.

Following a turbulent week, stocks wobbled on Monday with the Dow nearly flat and the Nasdaq posting modest gains. The 10-year Treasury note and S&P 500 yields fell after the data. Traders’ bets on a 50-basis point rate cut increased to over 50%. Markets eagerly await CPI figures and retail sales data later this week to predict the Fed’s actions.

Dow E-minis were up 0.24%, E-minis up 0.82%, and S&P 500 E-minis up 0.53% at 08:46 a.m. ET. Starbucks soared 9.8% in premarket trading after appointing Brian Niccol as CEO. Home Depot shares slipped as the retailer forecasted a decline in annual profit. Chipotle fell 7.8%, while Nvidia rose 3.6%.

On Holding beat revenue estimates with strong demand, leading to a 2.6% increase in shares. BuzzFeed narrowed its net loss in Q2, boosting shares by 17.4%. Another gauge of market sentiment, the VIX, was at 19.8 points. Investors eagerly await comments from Atlanta Fed President Raphael Bostic on the U.S. economic outlook.



Read more at Investing.com: Wall St opens higher on PPI, Starbucks boost By Reuters