Stocks are ticking higher Wednesday, adding to the strong run that has pulled Wall Street to its highest levels in more than 15 months.
The S&P 500 was 0.4% higher in early trading, coming off its highest closing level since early April 2022. The Dow Jones Industrial Average was up 187 points, or 0.5%, at 33,139, as of 9:55 a.m. Eastern time, and the Nasdaq composite was 0.2% higher.
Elevance Health was helping to lead the market after it jumped 7.5% The insurance provider reported stronger profit and revenue for the spring than analysts expected, while raising its forecast for earnings over the full year.
Stocks also broadly got a boost from easing pressure from the bond market, where yields fell after a report showed U.K. inflation cooled by more than expected. It eased to 7.9% in June, a 15-month low.
The U.K. data follows encouraging U.S. reports that have raised hope inflation is moderating enough to convince the Federal Reserve to soon halt its hikes to interest rates. That could allow the economy to avoid a long-predicted recession.
The pressure caused by high rates has already helped cause the collapse of several U.S. banks, which saw customers suddenly flee in flocks. Other smaller and midsized banks have since been under heavy scrutiny by investors, and they're beginning to report their results for the spring.
Western Alliance Bancorp bounced from an early loss to a gain of 2.8% after reporting weaker profit for the latest quarter than analysts expected. It also said customers added $3.5 billion in deposits from April through June.
U.S. Bancorp rose 0.7% after reporting weaker profit than expected but slightly stronger revenue. Goldman Sachs added 0.3% it fell short of profit expectations for the latest quarter but topped forecasts for revenue.
One of Wall Street's biggest winners was Carvana, which jumped 35.1%. The used-car dealer agreed with its lenders to reduce its debt by $1.2 billion. It also reported a milder net loss for the latest quarter than analysts expected.
The earnings reporting season is picking up momentum in its second week, and expectations are broadly low. Analysts are forecasting a third straight quarter of drops in earnings per share for S&P 500 companies, but that low bar also makes it easier for companies to top expectations.
Trucking company J.B. Hunt Transport Services reported a drop in earnings per share for the latest quarter that was worse than analysts expected. But its stock nevertheless rose 2.6%. Analysts pointed to the company's highlighting some encouraging trends, with a possible return to growth appearing closer on the horizon.
In stock markets abroad, the FTSE 100 in London jumped 2% following the encouraging inflation data there.
Stocks were mixed elsewhere in Europe and across Asia. Hong Kong’s Hang Seng fell 0.3%, partly due to selling of property shares after troubled developer China Evergrande reported its total debts rose in the past two years to about $340 billion.
In the bond market, the yield on the 10-year Treasury fell to 3.74% from 3.79% late Tuesday. It helps set rates for mortgages and other important loans.
AP Business writers Matt Ott and Elaine Kurtenbach contributed.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
