Dow Jones Today: Index Rebounds on Slowing Inflation
The Dow Jones recovered from yesterday’s selloff to gain 0.5% amid hopes that slowing inflation would end Fed rate hikes
After stumbling on Thursday to break its 13-session streak, the Dow Jones Industrial Average finished the week positive, gaining 0.5%, or 176 points, as investors reacted positively to data that showed inflation continued to slow.
Most of the week’s gains came in the final session, as the Dow gained 0.7% for the week. The Nasdaq gained 2% on the week after finishing higher by 1.9% today, while the S&P 500 finished higher by 1% on the day and 1% for the week.
Investors liked that the Personal Consumption Expenditures (PCE) price index dropped to 3% in June, an improvement on the 3.8% pace in May. The PCE price index is used by the Federal Reserve to judge inflation and the drop signaled that the Fed is closer to achieving its target inflation rate of 2%.
Intel (INTC) jumped 6.6% to lead the Dow 30 higher after the chipmaker posted a second-quarter profit and third-quarter revenue outlook that was better than expected.1
Shares of Procter & Gamble (PG) gained 2.8% after its earnings report showed its sales volume slipped, but its revenue increased 5% year-over-year after it raised prices by 7%.2
Microsoft (MSFT) shares rebounded from a two-day sell off to gain 2.3%, while Boeing (BA) was higher by 2% and Verizon (VZ) moved up 1.5%.
Walgreens Boots Alliance (WBA) was the worst performing Dow stock on the session, falling 2.7% after it announced that its chief financial officer was leaving the company.3
Chevron (CVX) was lower by 0.54% after it reported second-quarter earnings that showed revenue dropped nearly 30%, but still came in ahead of analyst forecasts.4
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