Stock Market Today: Stocks Rise as Key Fed-Watched Inflation Data Continues to Cool

U.S. stocks rose Friday as the latest reading of a closely watched inflation gauge extended the story of slowing inflation and investors absorbed the fallout from the Biden-Trump debate.

The S&P 500 (^GSPC) rose about 0.1% after the benchmark index neared its record high. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, while the Dow Jones Industrial Average (^DJI lost about 0.1%

Indicators are pointing to an upbeat end to a turbulent week that saw the S&P 500 and Nasdaq snap back from three-day losing streaks. While stocks are expected to have a bumper first half after the last trading day of June, the swings have stoked fears of a pullback for the rest of the year.

The last significant data point from the first six months of the year came in the form of the Fed’s preferred inflation gauge. Yahoo Finance’s Josh Schafer reported that inflation fell in May as prices rose at their slowest pace since March 2021.

The core personal consumption expenditures (PCE) index, which excludes the cost of food and energy and is closely watched by the Fed, rose 0.1% in May from the previous month, in line with Wall Street expectations.

Meanwhile, with the US elections in November high on the list of risks, investors have taken note of President Joe Biden’s poor performance in his first debate against presumptive Republican nominee Donald Trump. Tax cuts and a trade crackdown promised by the former president are seen as likely to boost stocks. Shares of Trump Media & Technology Group (DJT) jumped in morning trading.

The market is also on alert for new signs that consumer resilience is waning, as major companies report a weakening sales outlook. Nike (NKE) stock fell more than 15% in early trading, while Walgreens (WBA) stock remained under pressure following Thursday’s 22% drop.

Live5 updates

Friday, June 28, 2024 at 10:24 a.m. EDT

Stock Market Trends in Morning Trading

Here are some of the hottest stocks on Yahoo Finance’s trend tickers page during Friday morning trading.

Trump Media and Technology Group (DJT) : After former President Donald Trump faced off against current Commander-in-Chief Joe Biden in the first 2024 presidential debate, the company’s shares rose before falling about 2%. Biden’s performance was widely seen as choppy, marked by moments of confusion, making it appear as if Trump had won the night. The company is the parent company of Trump’s social media platform, Truth Social.

Nike (OF): The sportswear retailer fell nearly 20% Friday morning after the company forecast a larger-than-expected sales decline in 2025, with an expected 10% drop in the first quarter.

Infinera (INFN): Shares of the telecom equipment maker jumped 17% after Nokia reached an agreement to buy the company for $2.3 billion. The deal values Infinera at a 28% premium to the stock’s closing price on Wednesday.

Soft (BLOW): The online pet food supplier lost almost 10% following a volatile move triggered by a post on X from influential trader Keith Gill, known as Roaring Kitty. Gill’s account posted a photo of an animated dog on Thursday, with no elaboration or context, prompting investors to dive into Chewy. But that sudden rise was accompanied by a fall Friday morning, highlighting the sudden and erratic movements in meme stock trading.
Friday, June 28, 2024 at 9:32 a.m. EDT

Stocks rise as Fed’s preferred inflation measure shows further cooling

U.S. stocks rose on Friday as the latest reading of the Fed’s preferred inflation gauge showed inflation continues to slow, raising the likelihood of a rate cut in the coming months.

The S&P 500 (^GSPC) rose about 0.1% after the benchmark index neared its record high. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, while the Dow Jones Industrial Average (^DJI rose about 0.1%
Fri, Jun 28, 2024 at 8:47 AM ET

The Fed’s preferred inflation gauge shows prices rising at their slowest pace since March 2021

The latest reading from the Fed’s preferred inflation gauge showed inflation fell in May, with prices rising at their slowest pace since March 2021.

The core personal consumption expenditures (PCE) index, which excludes the cost of food and energy and is closely watched by the Federal Reserve, rose 0.1% in May from the previous month, in line with Wall Street expectations and slower than the 0.3% increase seen in April.

Core PCE rose 2.6% from a year earlier in May, in line with estimates and unchanged from the annual increase seen in the past two months. The May figure marks the slowest annual increase in more than three years.
Fri, Jun 28, 2024 5:45 AM ET

Trump The media on the move

After a shaky debate from President Joe Biden, Trump Media & Technology (DJT) stock is on the move.

As of this writing, shares were up 7.5% in premarket trading.

Be careful what you negotiate here, friends.

Here’s the company’s latest 10-Q report, showing a “company” doing something and losing a lot of money doing it.
Friday, June 28, 2024 at 5:18 AM EDT

Nike shares trampled

Just as bad to watch (sort of…) as last night’s debate is Nike (NKE) stock in premarket trading, down 14% as of this writing.

The company’s forecasts were a real disappointment, and concerns remain about management’s implementation of product innovation. Not seeing better forecasts from Nike in this Olympic year is a red flag.

I liked Stifel analyst Jim Duffy’s take on the quarter:

“The FY25 guide (the 5th consensus downgrade in 6 quarters) pushes the outlook for growth inflection further into 2025 (perhaps FY4 or spring 2025 at the earliest), asking investors to both buy into the success of unproven styles and consider an uncertain consumer discretionary backdrop through 2HCY24 until momentum can strengthen again in 2HCY25. Management credibility is seriously challenged and the potential for regime change at the C-level adds additional uncertainty. A November investor day will likely present a multi-year business model with lower returns than the previous one, adding risk to the premium enjoyed by the historical multiple. We remain sympathetic to the N-scale advantage in a category with secular growth tailwinds and structural margin potential but, given the current valuation, we cannot support a compelling upside case until the growth inflection becomes more tangible.”

Duffy lowered his rating on Nike to hold this morning.