The stock market sold off after the consumer price index jumped more than 9% in June, the highest increase in more than 40 years. But indexes pared losses.
The major stock indexes sold off late Tuesday ahead of the report. The Nasdaq composite opened 1.8% lower Wednesday but trimmed its loss to 0.9% around 10 a.m. ET. The S&P 500 was down 0.9% also while the Dow Jones Industrial Average was off 1%.
The Nasdaq met resistance at its 50-day moving average this week, a sign that it remains in a downtrend. The S&P 500 got turned back at the 21-day exponential moving average.
Volume rose on the Nasdaq and NYSE compared with the same time on Tuesday. Declining stocks outnumbered advancers by more than 2-to-1 on the Nasdaq and NYSE.
June consumer prices jumped 9.1% on a 12-month basis, the Labor Department reported earlier today. The consumer price index climbed 1.3% from May. Core prices, which exclude food and fuel items, rose 0.7% from May and 5.9% on an annual basis. That was slightly less than May's 6% core CPI.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30635.88 | -345.45 | -1.12 |
| S&P 500 | (0S&P5) | 3774.94 | -43.86 | -1.15 |
| Nasdaq | (0NDQC ) | 11127.99 | -136.74 | -1.21 |
| Russell 2000 | 169.80 | -1.67 | -0.97 | |
| IBD 50 | 26.41 | -0.13 | -0.49 | |
Last Update: 10:14 AM ET 7/13/2022 |
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The consensus estimate was an increase of 8.8%, according to Econoday. Economists expected a 1.1% increase in prices from the previous month. The core CPI estimate was for a 5.8% increase on an annual basis and 0.5% from the previous month.
Gas Prices Account For Much Of Inflation
"The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest
contributors," the Bureau of Labor Statistics said in its news release. The energy index rose 7.5% in June and contributed nearly half the all-items increase. The gasoline index rose 11.2%. The food index rose 1%.
In May, the annual CPI climbed 8.6%.
The yield on the 10-year Treasury note rose after the inflation report, up 8 basis points to 3.03%.
Several major banks report earnings Thursday and Friday. This morning, Delta Air Lines announced second-quarter earnings that missed expectations, although revenue was above views. The stock, which bounced more than 6% on Tuesday, slid nearly 8% Wednesday morning in heavy trading.
Other airlines fell in sympathy, and the industry group was one of today's worst performing among IBD's 197 IBD industry groups.
Fastenal skidded nearly 5% in heavy volume. The supplier of construction supplies including bolts and nuts met profit estimates. Sales rose 18%. Fastenal, which acts as a bellwether of the U.S. manufacturing industry, warned of "certain signs of softening that emerged in May and June."
Market Rally Falls On Hot Inflation, 'Everything' Fed Rate Hike Talk
IBD 50 Falls With Stock Market
The Innovator IBD 50 ETF fell 0.9%, performing in line with the stock market.
Murphy USA fell further below its 262.68 buy point, but so far there's no sell signal for the oil and gas retailer. Carlisle, which is forming a double-bottom base, dipped below its 50-day moving average.
Evolent Health fell another 1% and also slid below the 50-day line. The health care staff provider on Tuesday triggered the 7%-8% sell rule.
Intermex gapped down in heavy volume, and is now below the 21.48 buy point of a double bottom. So far, the loss for the money services firm is not large enough to cause a sell signal.
All S&P sectors were down except for the Energy Select Sector SPDR, which climbed 1.2%. The price of U.S. crude oil climbed 0.9% to $96.73 a barrel.
