Today’s Market Wrap Up and a Glimpse Into Thursday

Stocks were mostly higher on the heels of inflation data that could have been worse. The Dow Jones Industrial Average tacked on 220 points to reach a new record high thanks largely to gains in Caterpillar, Goldman Sachs and Home Depot. The S&P 500 was also higher while the tech-heavy Nasdaq edged lower.

Consumer prices inched up 0.5% in July vs. the previous month, sending the consumer price index to a reading of 5.4%. The results were slightly higher than economists had predicted, but the core rate, which excludes food and energy, increased by a modest 0.3%, which was better than expected.

Investors have less to worry about on the inflation front for the time being. According to reports, however, economists are saying the economy is not out of the woods yet and pricing pressure could kick in. As it stands, investors sold out of tech names and flocked to stocks that are more cyclical in nature.

Stocks to Watch

• Cryptocurrency exchange Coinbase advanced 3% on better-than-expected Q2 earnings and revenue.
• Meme stock Clover Health reported its Q2 results, and the stock is rallying 7% in after-hours trading. The company grew its revenue 140% vs. year-ago levels and according to management “is on a USD 1.6 billion annual revenue run rate.”
• Shares of fast-food restaurant Wendy’s gained almost 4% after the company reported better-than-expected Q2 results. Wendy’s lifted its quarterly dividend by 20% to USD 0.12 per share, which is payable in mid-September. The company is also investing in hundreds of delivery kitchens in the coming years amid a partnership with REEF.
• eBay’s stock fell slightly more than 2% on Q2 revenue results that were lighter than expected. The auction company’s revenue came in at USD 2.67 billion while Wall Street was looking for USD 3 billion.
• Shares of speaker company Sonos are rallying in extended-hours trading. The stock is up 7% after Sonos reported a surprise profit while the Street was bracing for a loss. The company is benefiting from a trend of consumers doling out more for high-quality in-home entertainment, including speakers.

Look Ahead

On the earnings front, Walt Disney, DoorDash and Airbnb are on tap. Investors will also get another dose of consumer data on Friday when the latest University of Michigan Consumer Sentiment rate is released.