Wall Street Battles For Fifth Day Of Gains As Inflation Cools, Gives Green Light To Rate Cuts; Financials Outperform: What's Driving Markets Wednesday?
Portfolio Pulse from Piero Cingari
Wall Street experienced mixed reactions as the July consumer inflation report showed a continued cooling trend, with the headline CPI at 2.9% year-over-year. Financial stocks outperformed, while communication services and consumer discretionary sectors lagged. Key movers included Alphabet Inc., Tesla Inc., and Starbucks Inc. Long-dated Treasury yields fell, boosting the iShares 20+ Year Treasury Bond ETF. The U.S. dollar index remained steady, while oil prices and Bitcoin declined.
August 14, 2024 | 5:28 pm
News sentiment analysis
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NEGATIVE IMPACT
Alphabet Inc. fell nearly 3% after reports that the U.S. Department of Justice may break up Google following a recent ruling that it monopolized the online search market.
The potential breakup of Google by the DOJ is a significant legal risk, likely to negatively impact Alphabet's stock in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Starbucks Inc. also contributed to the underperformance of the consumer discretionary sector.
Starbucks' decline added to the consumer discretionary sector's underperformance, suggesting potential short-term weakness in the stock.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Tesla Inc. dragged down the consumer discretionary sector, contributing to its underperformance.
Tesla's decline negatively impacted the consumer discretionary sector, indicating potential short-term weakness in the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Oil prices, tracked by the United States Oil Fund, declined by 1.1%, marking the second consecutive session of losses.
The decline in oil prices negatively impacted the United States Oil Fund, suggesting potential short-term weakness.
CONFIDENCE 65
IMPORTANCE 30
RELEVANCE 40
NEGATIVE IMPACT
The Consumer Discretionary Select Sector SPDR Fund lagged, down by 0.8%.
The underperformance of consumer discretionary stocks negatively impacted the Consumer Discretionary Select Sector SPDR Fund, indicating potential short-term weakness.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Charles Schwab Corp. jumped over 4% after reporting that total client assets reached $9.572 trillion in July, up 16% year-over-year.
Strong growth in client assets and net new assets positively impacted Charles Schwab's stock, indicating a short-term boost.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Long-dated Treasury yields fell by 4 basis points, boosting the iShares 20+ Year Treasury Bond ETF by 0.6%.
Falling long-dated Treasury yields positively impacted the iShares 20+ Year Treasury Bond ETF, indicating a short-term boost.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The Financials Select Sector SPDR Fund outperformed, up by 0.8%.
The outperformance of financial stocks positively impacted the Financials Select Sector SPDR Fund, indicating a short-term boost.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60