Stock Market Today (9/14/22): Stocks Close Higher After Terrible Tuesday – Kiplinger’s Personal Finance

Stocks stabilized Wednesday after Tuesday’s hotter-than-expected inflation data sparked Wall Street’s worst selloff in over two years.

Inflation remained in focus today with the early morning release of the producer price index (PPI) for August. Similar to yesterday’s consumer price index (CPI), the PPI – which measures what suppliers are charging for goods and services – rose at a slower annual clip in August than it did in July. However, on a month-over-month basis, both PPI and core PPI, which excludes energy and food prices, were up from July’s figures.

“There is a divergence in headline and core inflation building, where headline is cooling and core is heating up,” says Jamie Cox, managing partner at Harris Financial Group. “That’s an odd phenomenon and likely influenced by the shift from goods to services post-pandemic. The Fed should proceed with caution and not hit the emergency brake on rate hikes.”

While yesterday’s selling was broad-based, today’s action was more mixed. In terms of sector performance, real estate (-1.2%) and materials (-1.2%) were the biggest laggards, while energy (+2.8%) outperformed as U.S. crude futures rose 1.3% to settle at $88.48 per barrel.

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As for the major indexes, the Nasdaq Composite ended up 0.7% at 11,719, while the S&P 500 Index (+0.3% at 3,946) and the Dow Jones Industrial Average (+0.1% at 31,135) also finished with modest gains.

Other news in the stock market today:

  • The small-cap Russell 2000 rose 0.4% to 1,838.
  • Gold futures fell 0.5% to end at $1,709.10 an ounce.
  • Bitcoin shed 1.7% to $19,968.03. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • Starbucks (SBUX) jumped 5.5% after the coffee chain raised its long-term growth targets. The company is now projecting annual earnings-per-share growth of 15% to 20% over the next three years, and same-store sales growth of 7% to 9% – up from previous guidance of 11% and 4.5% growth, respectively, at the midpoint. SBUX also said it plans to build around 2,000 new U.S. stores by 2025, bringing its worldwide total to 45,000 locations, and will start buying back its shares in its next fiscal year. “Starbucks has set a high bar for itself and while we believe it is achievable given brand strength and new management capabilities, we believe skepticism persists about the challenges of accelerating growth – in particular at a time of macro uncertainty,” says BofA Securities analyst Sara Senatore (Buy).
  • Rail stocks like Union Pacific (UNP, -3.7%) and Norfolk Southern (NSC, -2.2%) were lower today as negotiations between freight railroad …….

    Source: https://www.kiplinger.com/investing/stocks/605220/stock-market-today-091422-stocks-close-higher-after-terrible-tuesday

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