Stock indexes rise on potential Fed rate cut, chip stocks rebound, bank earnings disappoint.

From Nasdaq: 2024-07-12 13:11:35

Stock indexes are up today, with the Dow hitting a 7-week high. Rising bond yields initially weighed on stocks after a strong US PPI report, but details easing inflation concerns helped futures recover. Chip stocks rebounded after Thursday’s sell-off. Bank earnings were mostly negative, with Wells Fargo and JPMorgan reporting weaker-than-expected results. The US PPI for June beat expectations, indicating strong inflation. The University of Michigan’s consumer sentiment index unexpectedly fell to an 8-month low. Overseas markets are mixed, with European bonds seeing higher yields. Interest rates are down slightly, and swaps predict a potential ECB rate cut in July. Chip stocks are leading gainers, while Fastenal, Bank of New York Mellon, and Carvana are also up. On the downside, Wells Fargo, JPMorgan, Citigroup, and airline stocks are in the red. Boeing is down after 737 Max delays, and Snowflake is lower after a price target cut. Earnings reports from Bank of New York Mellon, Citigroup, Fastenal, JPMorgan, and Wells Fargo are expected today.



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