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U.S. stocks are rising as investors focus on earnings, inflation report

Published 08/06/2023, 07:46 PM
Updated 08/07/2023, 10:43 AM
© Reuters.
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Investing.com -- U.S. stocks were rising on Monday, getting the new week on a positive note as investors await more corporate earnings and key inflation data.

By 10:42 ET (14:42 GMT), the Dow Jones Industrial Average was up 331 points or 0.9%, while the S&P 500 was up 0.7% and the NASDAQ Composite was up 0.3%.

The benchmark Wall Street indices suffered losses last week, with the tech-heavy Nasdaq Composite losing 2.9% and the broad-based S&P 500 down 2.3%, their worst weeks since March. The blue-chip Dow Jones Industrial Average fell 1.1%.

These losses followed data showing weaker-than-anticipated jobs growth in July, as well as disappointing hardware sales from tech behemoth Apple (NASDAQ:AAPL).

Inflation data in spotlight

The focus of attention this week will be on Thursday’s release of the latest consumer inflation data, which could give traders further insight into the potential policy path ahead for the Federal Reserve.

The consumer price index for July is expected to accelerate to 3.3% annually, up from 3.0% in the prior month, while the core figure, which strips out volatile items like food and energy, is projected to slow to 4.7% year-on-year.

Producer prices, on Friday, will complete the inflation outlook, with core PPI expected to rise by 2.3% from a year earlier.

The slate is quiet Monday, but several Fed officials are due to speak, including Philadelphia Fed President Patrick Harker and Fed Governor Michelle Bowman.

Entertainment sector dominates earnings

The corporate sector is entering the final stretch of the second-quarter earnings season. According to FactSet data cited by CNBC, more than 84% of the businesses in the S&P 500 have already reported, with about four-fifths of these numbers topping Wall Street expectations.

The entertainment sector is set to become the week’s focus, with Walt Disney (NYSE:DIS), News Corp (NASDAQ:NWSA), and Fox (NASDAQ:FOX) all expected to report tough conditions.

Disney, in particular, has had a string of disappointing film releases, and its theme parks also seem to be struggling.

Software maker Palantir (NYSE:PLTR), and entertainment firm Paramount Global (NASDAQ:PARA) will make up some of the biggest companies unveiling their latest quarterly results on Monday.

Crude retreats from four-month highs

Oil prices edged lower Monday, but remained near their highest levels since mid-April after top producers Saudi Arabia and Russia announced plans late last week to extend output cuts for another month to tighten global markets further.

(Peter Nurse and Oliver Gray contributed to this article.)

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