Sharecast News
10 Jun, 2021 15:26

US open: S&P 500 hits new record high as traders digest CPI reading

wall street

Wall Street stocks traded higher at the open on Thursday as market participants thumbed over a consumer price index that revealed a bigger-than-expected increase in price pressures and a fresh batch of jobless claims data.

As of 1525 BST, the Dow Jones Industrial Average was up 0.53% at 34,630.77, while the S&P 500 was 0.57% firmer at 4,243.56 and the Nasdaq Composite came out the gate 0.72% stronger at 14,011.89.

The Dow opened 183.63 points higher on Thursday, reversing losses recorded in the previous session, and the S&P 500 rallied to a new record.

The morning's primary focus was the monthly consumer price index, which revealed inflation in the US bounded ahead in May with big gains evident across nearly all categories of products and services. According to the Department of Labor, headline consumer prices jumped at a month-on-month pace of 0.6%, pushing the annual rate of increase from 4.2% for April to 5.0%. Economists had forecast CPI to rise by 0.4% on the month and 4.6% on the year.

In addition to the CPI reading, the number of Americans lining up for state unemployment benefits declined for a sixth consecutive week, with initial claims decreasing by 9,000 to 376,000 in the week ended 5 June, according to the Labor Department. Significantly, continuing claims for ongoing state unemployment dropped 258,000 in the week ended 29 May to 3.5m - the largest decline since mid-March.

In the corporate space, UPS stock ticked up at the bell following an upgrade from analysts at JPMorgan, while shares in reopening plays Boeing and Delta Air Lines also flew higher after the open.

So-called "meme stock" GameStop fell around 9% in early trading after tapping former Amazon exec Matt Furlong for CEO and revealing that sales had surged 25% last quarter.

Still to come on the macro front, the federal government will publish its monthly budget statement at 1900 BST.


News Source: © 2021 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.