Investing.com – U.S. stocks edged higher on Tuesday as some signs that inflation is easing bolstered the case for a rate cut by the Federal Reserve as soon as next month, prompting a Treasury retreat.
At 15:36 ET (18:36 GMT), rose 389 points, or 1%, gained 1.5%, and rose 2.3%.
PPI inflation fell in July as CPI rose
Data released early Tuesday showed a 0.1% monthly increase in July, compared with a 0.2% rise expected by economists. For the year, it rose to 2.2%, compared to an average of 2.3%.
Excluding the volatile food and energy sectors, it was down for the month, compared with an expected increase of 0.2%. For the year, the minimum PPI rate stands at 2.4%, compared to the average rate of 2.7%.
“The cooler-than-expected PPI report provides welcome support to those interested in near-term rate cuts,” Stifel said in a recent note headed by the day's new inflation data release.
fell sharply as investors' bets on the September rate tightened, with the odds of a 25 basis point cut at 45%, while a major cut was priced at 55%, according to Investing.com's Fed Rate Monitor Tool.
The Home Depot rises despite guidance cut, Starbucks jumps after firing CEO, Dell climbs Barclays advances
Home Depot (NYSE: ) stock rose more than 1% paring premarket losses after the retailer lowered its full-year outlook, citing weak consumer demand for home improvement projects.
Company Chipotle Mexican Grill Inc (NYSE: ) fell 8% after Chipotle CEO Brian Niccol was tapped by Starbucks to become its new CEO effective Sept. 9, replacing Laxman Narasimhan, who was fired immediately.
Starbucks Corporation (NASDAQ: ), which has been a target of activist investors seeking change in the coffee chain, jumped 23% on the day. Others on Wall Street remained unconvinced, noting that Chipotle had never embraced menu innovation or marketing of any kind.
“The challenge [for Starbucks] connecting with a new customer,” Wedbush said at the point. “Without the ability to change direction where the big wind is blowing, we view shareholder euphoria (as reflected in the share price this morning) as premature.”
Dell Technologies (NYSE: ) jumped 5 percent after Barclays upgraded the stock to equal weight from underweight, following the tech company's latest setback.
Alphabet Inc Class A (NASDAQ: ) rose 1% after unveiling its AI-based Pixel smartphone.
(Peter Nurse, Ambar Warrick contributed to this article.)
